A Kent-headquartered supplier of haircare and skincare products, which employs a 170-strong workforce, has been acquired in a £23m deal.
Medichem Manufacturing is a long-standing supplier to its acquirer, Revolution Beauty, producing all of its good from its UK facility in Queenborough.
Its operations embody an R&D laboratory, bulk manufacturing, warehousing and distribution.
The firm additionally has a restricted variety of clients apart from Revolution Beauty, which has contributed in extra of 90 per cent of Medichem’s income within the calendar 12 months to this point. Turnover throughout the 12 months to 31 December 2020 was £13.4m, with pre-tax income at £1.6m.
The choice to accumulate Medichem was disclosed on the time of Revolution’s IPO in July 2021.
It is the corporate’s first buy and supplies the group with its personal vertically built-in manufacturing enterprise, permitting it to reinforce margins, enhance management of its provide chain and increase productiveness.
Adam Minto, chief govt and joint founding father of Revolution Beauty Group, stated: “The intention to accumulate Medichem was disclosed on the time of our IPO, and I’m happy to announce as we speak that we’re delivering in opposition to our technique and exercising our choice to accumulate this highly-complementary manufacturing enterprise.
“By vertically integrating Revolution Beauty on this approach and taking manufacturing in-house for the primary time, we may have much more management of our provide chain, permitting us to enhance productiveness, our value base and margins, whereas being earnings accretive.”
Zeus Capital is appearing as nominated adviser and dealer on the deal.
https://www.insidermedia.com/information/south-east/haircare-products-supplier-bought-for-23m
