Sukin skincare owner BWX Ltd (ASX: BWX) is being sued by Waterloo Capital Partners in the USA.
BWX is the owner of several natural beauty brands including the very popular Sukin range. Waterloo Capital Partners (WCP) is the business broker that BWX used to identify acquisition opportunities in the USA.
What’s going on?
BWX acquired two US natural beauty businesses in 2017, being Mineral Fusions and Andalou Naturals. WCP is claiming that BWX owes ‘material damages’ for various items in relation to these deals. BWX responded to an article published by Fairfax media regarding the matter.
One item alleged is that BWX owes a success fee of around $2 million for the above acquisitions. BWX said it doesn’t believe a success fee is payable and even if it is, it depends on several factors including the future performance of the businesses.
WCP is also claiming it’s owed a share of the management incentive pool if the Bain Capital takeover offer succeeds. BWX said that this part of the claim is “completely misconceived“.
The Independent Board Committee of BWX thinks this claim has been opportunistically filed due to the takeover offer and will defend it.
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