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Gibraltar Provides $10MM ABL to Multi-Brand Beauty Products Company

July 19, 2022, 07:20 AM
Filed Under: Consumer Products

Founded in 2019 and led by an experienced management team, Scent Beauty has developed a multi-brand, omni-channel, integrated direct-to-consumer (“DTC”) approach to marketing and delivering fragrances and home scents, as well as skin care, hair, and wellness products. The rapid growth of their diverse business lines, accelerating consumer preference for DTC beauty purchases, and the company’s growing retailer customer base resulted in a need for an asset-based credit facility to finance the expansion of its working capital.

Scent Beauty hired Brooks, Houghton & Company, a NYC-based merchant banking firm, to identify a financing partner to assist the company with its strong sales growth trajectory. As the financing search process evolved, it became clear that Gibraltar’s expert team would best serve the company now and in the future.  Direct access to Gibraltar’s senior credit decision makers, who took the time to understand Scent Beauty’s business plan, was a primary driver of this decision.

Ultimately, Scent Beauty was able to secure a $10MM ABL supported by advances against accounts receivable and inventory.

Although Scent Beauty was just formed in 2019, the business has experienced rapidly growing sales volume since inception. GBC’s team saw strength in the management team’s proven track record with similar companies, the company’s established strategic partnerships and the strong capitalization of the company’s balance sheet.

“Gibraltar’s team completed the due diligence necessary to understand Scent Beauty’s story and success,” said Jim Shiah, CFO and Co-Founder of Scent Beauty. “GBC’s entire team invested in the process and truly got to know our business and our team. This gave us confidence we were choosing a lending partner who could support our growth.”

Scent Beauty has successfully developed or licensed numerous brands including Stetson, Dolly Parton, Kylie Minogue, Sabrina Carpenter, The Phluid Project, K3 by Kenzo Takada, and Estate of Whitney Houston. The company's long-term growth model involves adding new brands, further improving their direct-to-consumer experience, and expanding their growing retailer network.







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