Waldencast sells rights to the ‘Obagi’ trademark in Japan to Rohto for $82.5M

Waldencast (WALD) announced that it had sold its rights to the “Obagi” trademark in Japan to Rohto Pharmaceutical Co. for $82.5M. Since 2002, Rohto has licensed the “Obagi” mark for use in the Japanese market to commercialize Rohto’s products. During that time, Rohto has developed a successful standalone and distinctive brand addressed to Japanese consumers with no operational or branding overlap with the global Obagi Medical brand. Royalties paid by Rohto under the previous licensing arrangements represented 3% of net revenue for the Obagi Medical business for the fiscal year ended December 31, 2024. In addition, Waldencast entered into a new credit agreement with funds managed by entities of the Lumina Capital Management Ltda. Group, with proceeds expected to be received by no later than November 17th, 2025 and used to repay in full all outstanding amounts under the Company’s existing facilities and fund working capital and general corporate purposes. The Lumina Credit Agreement provides for a three-year secured first-lien term loan facility in an aggregate principal amount of $225M. The new facility improves the company’s liquidity position to invest in support of the growth of its Obagi Medical and Milk Makeup brands, while providing substantial flexibility on covenants through Q4 2026. The company intends to use the majority of the proceeds received from the transaction with Rohto to promptly repay a significant portion of this loan facility, further deleveraging its balance sheet position.