Monitor closing conditions: HSR clearance and state pharmacy board approvals are key milestones. Post-close, Waldencast's value depends entirely on Milk Makeup's growth. The $366M cash (net of adjustments) could be used for dividends, buybacks, or M&A – watch for Board decisions on capital allocation. Warrants are deeply out of the money; any value requires significant stock appreciation post-sale.
Price Chart
Executive Summary
Waldencast announces sale of its Obagi Medical business to Bridgepoint for up to $460M enterprise value, including $366M cash, $30M vendor notes, and up to $64M earnout. Proceeds will repay ~$178M senior term loan. Post-close, Waldencast becomes a pure-play on Milk Makeup. Key executives depart and reinvest $6M. Closing expected Q3 2026.
Key Facts
- Enterprise value up to $460M including $366M cash, $30M vendor notes, and $64M earnout
- Total consideration: $366M cash (subject to adjustments), $10M fixed vendor note, $20M adjustable vendor note, up to $64M earnout
- Expects to repay ~$178M senior secured term loan at closing
- Transaction expected to close Q3 2026, subject to regulatory approvals and customary conditions
- CEO Michel Brousset and Chief Growth Officer Hind Sebti to depart and reinvest $6M alongside Bridgepoint
- Waldencast retains Milk Makeup, which generated $110.4M revenue and $15.2M Adjusted EBITDA in 2025
- Reverse termination fee of $16M payable by buyer under certain conditions
- Warrant ticker WALDW with $5M market cap – highly speculative
- HSR filing and state pharmacy board approvals required
Financial Impact
Up to $460M enterprise value for Obagi Medical; debt repayment of ~$178M; Milk Makeup standalone revenue $110.4M, Adjusted EBITDA $15.2M
Risk Factors
- Regulatory delays or failure to obtain approvals
- Post-close execution risk as a single-brand company
- Earnout may not be achieved
- Key management departures and transition risks
- Vendor notes and debt structure may limit future flexibility
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001840199-26-000061 |
| Exhibit: exhibit991.htm | 0001840199-26-000061 |
| Document: wald6-k_1june2026.htm | 0001840199-26-000061 |
| Document: 0001840199-26-000061-index-headers.html | 0001840199-26-000061 |
| Document: 0001840199-26-000061-index.html | 0001840199-26-000061 |
| Document: 0001840199-26-000061.txt | 0001840199-26-000061 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 1, 2026 21w ago | 6-K | $0.0490 $0.0260 | ▼ −46.94% | ▼ −48.17% | — |
Apr 28, 2026 25w ago | 6-K | $0.0340 $0.0400 | ▲ +17.65% | ▲ +13.54% | — |
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