CCA Industries purchases two beauty trademarks

On Feb. 14, CCA Industries Inc. in Lyndhurst said it purchased the Hair Off trademark from Inspired Beauty Brands Inc. and the Solar Sense trademark from K.E.L.K. Corp. Inspired Beauty Brands Inc. is based in New York City and K.E.L.K. Corp. is based in Ontario.

The Hair Off trademark and related intellectual property provides CCA with a wax-based facial and body hair removal system complementary to its Bikini Zone depilatory line of products, according to a statement from Chairman Lance Funston.

At the end of 2019, CCA retained the services of New York-based financial advisory firm Cross Tree LLC to explore “strategic alternatives.”

“Acquiring Hair Off at 1.8 [times] gross revenue and Solar Sense at 1 [times] average historical annual revenue made strategic sense,” Funston said.

Both Hair Off and Solar Sense products, focused on sun care, will be marketed exclusively through e-commerce platforms.

CCA’s purchase of the Hair Off trademark and related intellectual property was completed in December 2019 for $500,000. CCA had been licensing the Hair Off trademark since March 1986 in a license agreement that would have expired on Nov. 30, 2022.

In the fiscal year that ended Nov. 30, 2019, the Hair Off brand had gross sales of $275,518, for which CCA paid royalties of 10 percent of gross sales.

The Solar Sense trademark purchase was completed in January 2020 for $625,000 in cash and 155,000 shares of preferred stock. CCA acquired all rights to the Solar Sense trademark, after having licensed the trademark since 1998. The 50-year-old brand is positioned in the “all-natural” zinc sector.

Both purchases enable the CCA to invest in its digital initiative.

“The company has had a long history with the Solar Sense brand, which we believe has great value in the marketplace. We will be working to reintroduce the brand in the second half of fiscal 2020,” Funston said in a prepared statement.