Warpaint acquires Brand Architekts to drive 'international organic growth'

Warpaint, the cosmetics company that owns W7 and Technic, has reached an agreement to acquire competitor Brand Architekts, owner of Skin & Tan (previously known as Skinny Tan), Super Facialist, and more.

Brand Architekts said it "has reached agreement on the terms and conditions of a recommended cash offer to be made by Warpaint". Under the terms of the acquisition, each shareholder would receive 48p per share.

The deal values Brand Architekts at £13.88 million and represents a premium of around 100% to the closing price of its shares on 4 December.

Sam Bazini, CEO of Warpaint, told TheIndustry.beauty: "The proposed acquisition of Brand Architekts provides an attractive strategic opportunity to supplement our ongoing international organic growth by integrating Brand Architekts' highly complementary brands into Warpaint's portfolio and leveraging the enhanced range of brands across a wider number of customer relationships.

"Additionally, as part of a larger group we believe applying our established supply and distribution channels and approach to Brand Architekts will improve efficiency, reduce costs and drive profitability. We are looking forward to working with the Brand Architekts team to realise Brand Architekts' potential."

Warpaint already has a track record of integrating "complementary brands", take its acquisition of Retra Holdings Limited in 2017, for example. Between 2017 and 2023, its revenue grew 55%. Warpaint expects this latest deal to further boost its earnings, adding that the deal is "an exciting and relatively low-risk opportunity to further bolster growth opportunities" in a statement published on The London Stock Exchange.

Roger McDowell, Chair of Brand Architekts, said: "The Brand Architekts Board has worked hard to deliver on the Brand Architekts Group's strategic priorities against a challenging environment and continues to have confidence in its brands and longer-term prospects. However, the Brand Architekts Board recognises the certainty of value of the Cash Offer at a 100 per cent. premium to the current share price, against the backdrop of an uncertain macro-economic environment.

"The Acquisition will strengthen the enlarged business for the benefit of all our customers, employees and other stakeholders. The Brand Architekts Directors believe this Acquisition is in the best interests of its shareholders and as such are unanimously recommending the Acquisition to its shareholders."

In the same breath, Warpaint has today announced it has successfully raised £14 million through an oversubscribed share placing. The newly issued shares totalled 2,745,098 at 510 pence each. This fundraising initiative saw participation from the company's directors, who subscribed for £582,499 worth of shares as a whole.