Men’s Grooming Brand Manscaped Lands SPAC Deal: What Investors Should Know

A leading men’s grooming brand announced a SPAC deal Tuesday after months of rumors.

A leading men’s grooming brand announced a SPAC deal Tuesday after months of rumors.

The SPAC Deal: Manscaped, a leader in men’s grooming and “below the waist” care, is going public in a SPAC merger with Bright Lights Acquisition Corp (NASDAQ:BLTS).

The merger gives Manscaped an enterprise value of $1 billion.

The SPAC merger includes a $75 million PIPE of shares priced at $9.20 per share instead of the traditional $10 pricing model.

The company expects the merger to close in the first quarter of 2022 with shares trading under the new ticker MANS on the Nasdaq. Public BLTS shareholders will own 18.5% of the company after the merger.

About Manscaped: Founded in 2016, Manscaped has quickly scaled up and gained strong brand awareness for a category that lacked major companies.

Manscaped operates mainly in the “below-the-waist” grooming market, also known as manscaping. The company has its products available in 38 countries. Products are sold through its direct-to-customer business model, which represents 61% of sales and through retail partnerships.

Amazon.com (NASDAQ:AMZN) is a partner for the company’s marketplace business, which makes up 24% of revenue. Revenue on Amazon.com has gone up three times from 2019 through 2020, according to the company. Retailers account for 15% of sales with Target Corp (NYSE:TGT), Best Buy Co (NYSE:BBY) and Macy’s Inc (NYSE:M) the company’s biggest partners.

Manscaped has launched partnerships with NFL star Rob Gronkowski, the UFC, Nascar and the San Francisco 49ers.

“Manscaped was founded on delivering much-needed grooming solutions for men but has since catapulted into a full lifestyle brand with a multigenerational cult following,” said Manscaped CEO and founder Paul Tran.

Related Link: Men’s Grooming Company Manscaped In Talks To Go Public Via SPAC: What Investors Should Know

Growth Ahead: Manscaped expects to receive up to $305 million in proceeds from the SPAC merger, which it will use to continue its growth plans.

Manscaped sees a total addressable market size of 900 million men worldwide and a $70 billion global male grooming market. The company’s presentation lists a market size of 43 million U.S. male millennials and 80 million men in the U.S. aged 15-54.

The company highlights international growth as one of its key growth areas. International revenue is forecasted to represent 33% of the company’s total revenue by fiscal 2023.

The company also highlighted expanding into additional men’s grooming categories.

The company’s brand awareness stood at 41.8% at the end of 2020, compared to 11% at the end of 2019. Manscaped has over 500 million followers on Instagram, ahead of many top men’s grooming companies.

“Manscaped has a huge opportunity to capitalize on the sizable and growing men’s self-care market by offering its unique line of grooming products,” said Bright Lights CEO Michael Mahan.

Financials: Manscaped has trailing 12-month revenue of $285 million. The company reported revenue of $182 million in fiscal 2020 and $228 million in fiscal 2021. Manscaped had a gross profit of $105 million in fiscal 2020 and adjsuted EBITDA of $5 million. 

The company has a goal of hitting more than $500 million in trailing 12-month revenue by 2023. Revenue guidance is $386 million for fiscal 2022.

BLTS Price Action: Shares are up 1.6% to $9.94 on Tuesday.

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