Milk Makeup Sales Plummet 57% After $1.2B Empire Plan Fails

Waldencast Acquisition Corp., a special purpose acquisition company co-founded by former L'Oréal executives Michel Brousset and Hind Sebti, has seen its ambitious $1.2 billion plan to build a global beauty and wellness empire significantly scale back, leaving only the cult makeup brand Milk Makeup after divesting its other assets. Launched in early 2021 during a period of high SPAC activity, Waldencast initially aimed to create a multibrand platform through a three-way business combination. This combination, announced in November 2021, involved Obagi Medical, a physician-dispensed skincare brand, and Milk Makeup. The transaction officially closed in July 2022.

However, the envisioned multibrand platform began to unravel within months. In June, Waldencast agreed to sell Obagi Medical to private equity firm Bridgepoint for up to $460 million, a deal that concluded on July 30. This figure includes vendor notes and potential earnout payments of up to $64 million contingent on Obagi's future performance. Waldencast had previously valued Obagi at $858 million on an enterprise-value basis when the initial deal was struck in 2021, according to SEC filings. Further complicating the structure, Waldencast had already sold Obagi's rights in Japan to Rohto Pharmaceutical for $82.5 million in late 2025. The departure of three senior Waldencast executives—Brousset, Sebti, and CFO Manuel Manfredi—to lead Obagi alongside Bridgepoint marked a significant shift, leaving Executive Chairman Felipe Dutra as Waldencast's principal executive and financial officer.

Consequently, Waldencast's focus has narrowed exclusively to Milk Makeup. While Milk Makeup maintains a visible presence at major retailers such as Sephora and Ulta, with its products on shelves and retaining a degree of prestige, the corporate outlook is considerably less optimistic. Recent financial disclosures reveal a stark downturn for the brand, with sales experiencing a significant decline of 57%. This sharp drop underscores the challenges Milk Makeup faces and the diminished prospects for the grander vision Waldencast initially pursued. The failure to establish a diversified beauty and wellness conglomerate has led to a concentrated effort on revitalizing a single, underperforming brand, a stark contrast to the initial $1.2 billion valuation and expansionary goals.