The Beauty Health Company Expands International Direct Market Presence

The Beauty Health Company (“BeautyHealth” or the “Company”) (NASDAQ: SKIN), parent entity of The HydraFacial Company (“HydraFacial”), a global category-creating beauty health company, today announced the expansion of its global footprint, with the pending or completed acquisitions of four international, third-party distributors for HydraFacial. The total purchase price for the four distributors will be approximately $35 million, consisting of approximately $28 million in cash and $7 million in shares of the Company’s Class A Common Stock. This represents an average of 20% seller equity rollover across the four transactions. The Company will also be required to issue up to 7.5 million shares of Class A Common Stock to the former owners of HydraFacial pursuant to the earnout provision in the merger agreement related to the Company’s May 2021 business combination.

The transactions, which are expected to be immediately accretive to earnings, and have closed or are expected to close in June 2021, further solidify the Company’s direct presence in key international markets, including Germany, Australia, France and Mexico. Expected results from the anticipated acquisition of these distributors in the second half of the year were included in the Company’s previously provided 2021 outlook. Three of the acquisitions remain subject to customary closing conditions.

“As we continue to bring BeautyHealth to the masses, we are thrilled to convert four of our valued distributors, with whom we’ve built great relationships, into direct management,” said Clint Carnell, Chief Executive Officer of BeautyHealth. “This direct model approach brings us closer to both our providers and our consumers around the world, leading to more opportunities for direct engagement and creative experiences that drive brand awareness. We have seen the successful testing case with our earlier acquisition of a former distributer in the UK and plan to continue to build on our scaling and marketing capability globally.”

The acquisitions and continued investment in scaling internationally represent HydraFacial’s focus and execution on its key global expansion initiative. The Company has also experienced a continued strong trend in global consumer engagement and demand, as experienced at its recent pop-ups and expos in Dubai, London and Shanghai, which further validates its global direct marketing initiatives.