Beauty products provider Brand Architekts acquired by Warpaint for $27.7m
Warpaint London PLC has announced its acquisition of challenger beauty firm Brand Architekts Group PLC in a deal valued at £13.88 million. The move aims to enhance Warpaint's international organic growth through complementary brand integration and efficiency improvements.
Transaction snapshot
Deal value: £13.88 million (£27.7 million AUD)
Deal multiples: N/A
Deal type: Acquisition
Investors: Warpaint London
The deal values Brand Architekts at 48 pence per share, marking a 100% premium to its 4 December closing price. Shareholders may opt for 0.0916 newly issued Warpaint shares per Brand Architekts share as an alternative to the cash offer.
Sam Bazini, Warpaint’s CEO, said the acquisition presents a strategic opportunity to integrate Brand Architekts' complementary brands, improve efficiency, and reduce costs through established supply and distribution channels. Bazini highlighted the acquisition as a low-risk opportunity that aligns with Warpaint's track record of successfully integrating acquisitions, such as Retra Holdings in 2017. Between 2017 and 2023, Warpaint's revenue grew by 55%, demonstrating the success of its growth strategy.
Roger McDowell, Chair of Brand Architekts, stated the board unanimously supports the acquisition, emphasising the deal provides certainty of value amid ongoing economic uncertainty. He believes the acquisition will benefit all stakeholders, including customers and employees.
To support the deal, Warpaint announced a successful oversubscribed share placing, raising £14 million (£27.9 million AUD). The new shares, issued at 510 pence each, included £582,499 worth subscribed by Warpaint directors. Funds from the placing will be used to repay loans taken to fund the acquisition.
The acquisition is expected to close early next year, subject to standard approvals. Warpaint anticipates the deal will strengthen its market position and deliver long-term profitability growth.
