Brodie & Stone is latest Creightons acquisition after Emma Hardie
Busy beauty and personal care products maker Creightons has made its second acquisition in as many months. This time it’s snapped up personal care products maker Brodie & Stone for £4.8 million, “to further strengthen our position” in UK supermarkets.
The deal includes both Brodie & Stone Holdings (BSH) and its subsidiary, Brodie & Stone International (BSI). The purchase price includes £3.7 million in cash and the issue of 1,000,000 ordinary shares of 1p each. The deal is expected to become effective on or around 1 October.
Brodie & Stone sells products under the T Zone, Natural World and Janina brands, primarily to retailers in the UK market. Most recently available accounts of BSH and BSI to 31 December 2020 showed turnover of £5.8 million, with profits before tax of £0.5 million.
“The transaction represents a further important development for Creightons plc following the acquisition of Balance Active Formula from Brodie & Stone in June 2019 and the recent [July] acquisition of Emma Hardie Limited”, Creightons said in a stock market release on Monday.
Creightons added: “The Balance Active Formula brand has been very successful in driving significant growth and improved margins in the branded division with existing and new customers both in the UK and in international markets.
“The intention is to repeat the success of that acquisition with T Zone, Natural World and Janina. These brands are placed well in the company's core market position and therefore, enhance the current brand portfolio by strengthening the coverage and category presence with key mainstream retailers in the UK market, in the core performing categories of both skincare and haircare".
Creightons also noted there were “significant opportunities for extending distribution, particularly in international markets. The brands provide good vehicles through which product innovation can be harnessed and delivered quickly to the consumer.
Both manufacturing and management synergies will drive a higher return in the brands".
MD Bernard Johnson also said the latest purchase “is further evidence of our ambition and commitment to expand our branded business as announced during our recent investor presentation”.
Following its latest trading statement in July, Creightons said it was in an “excellent position to take advantage of any new opportunities”, including “being open to the acquisition of new brands with a digital presence”.
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