Business
Acquisition of Medichem Manufacturing
Acquisition of Medichem Manufacturing.
About this update from Revolution Beauty Group Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 3534Q\n Revolution Beauty Group PLC\n 27 October 2021\n \n \n \n \n \n \n \n \n For Immediate Release \n \n \n \n \n 27 October 2021\n \n \n \n \n \n \n \n \n \n This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (\"MAR\"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.\n \n \n \n \n \n \n \n \n REVOLUTION BEAUTY GROUP PLC\n \n \n (\"Revolution Beauty\", the \"Group\" or the \"Company\")\n \n \n \n \n \n Acquisition of Medichem Manufacturing Ltd\n \n \n \n \n \n \n \n \n Provides Revolution Beauty with its own, fully-owned and vertically integrated manufacturing business\nBoard expects the acquisition to be significantly earnings enhancing in FY23\n \n \n \n \n \n \n \n \n Revolution Beauty Group plc (AIM: REVB), the mass beauty innovator, is pleased to announce Revolution Beauty Holdings Limited, a direct subsidiary of the Company, has acquired the entire issued share capital of Medichem Manufacturing Ltd (\"Medichem\") for total consideration of £23.0 million subject to a net assets adjustment by reference to completion accounts (the \"Acquisition\"). \n \n \n \n \n \n Medichem is a long-standing supplier of haircare and skincare products to Revolution Beauty, manufacturing all products from its UK facility. Medichem's end-to-end operations include an R&D laboratory, bulk manufacturing, warehousing and distribution, and employs more than 170 people. During its last financial year to 31 December 2020, Medichem reported audited revenues of £13.4 million and profit before tax of £1.6 million. Given the strong year to date growth in Revolution Beauty's haircare and skincare categories, Medichem has continued to perform well in 2021. Medichem has a limited number of customers other than Revolution Beauty (which has contributed in excess of 90% of Medichem's revenue in the calendar year to date). \n \n \n \n \n \n The option to acquire Medichem was disclosed at the time IPO and today's announcement demonstrates Revolution Beauty's delivery against its strategy set out at the time of listing. It is Revolution Beauty's first acquisit...