Business
Revised deferred consideration for Medichem
Revised deferred consideration for Medichem.
About this update from Revolution Beauty Group Plc
[{"type":"text","content":"\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 For immediate release\n \n \n \n \n \n \n 7 March\n \n \n 2023\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n REVOLUTION BEAUTY GROUP PLC\n \n \n \n (\"Revolution Beauty\", the \"Group\" or the \"Company\")\n \n \n \n \n \n \n \n \n Revised deferred consideration for Medichem Manufacturing Limited\n \n \n \n \n \n \n \n \n Revolution Beauty Group plc (AIM: REVB), the multi-channel mass beauty innovator, today provides an update on the deferred consideration payments for Medichem Manufacturing Limited (\"Medichem\").\n \n \n On 26 October 2021, Tom Allsworth (the \"Seller\") and Revolution Beauty Holdings Limited (the \"Buyer\") entered into an agreement for the sale and purchase of the entire issued share capital of Medichem (now called Revolution Beauty Labs Ltd) for a total consideration of £23.0 million (the \"Acquisition\"), of which £7.0 million has been paid to date. The deferred consideration of £16.0 million plus a completion net asset adjustment of £4.5 million were payable in equal annual instalments of £5.125 million over four years (together with an amount equivalent to interest accrued thereon at the rate of 2.5% per annum). In addition, a loan made prior to the Acquisition from Medichem to Walbrook Investments Limited (\"Walbrook\"),\n a company controlled by Tom Allsworth,\n of £1.5 million was to be settled by way of annual deductions of £375,000 from the annual payments due to the Seller over four years.\n \n \n The Acquisition constituted a \n related party transaction\n under the AIM Rules as Tom Allsworth, Executive Chairman of Revolution Beauty, was the sole shareholder of Medichem.\n \n \n The Buyer and the Seller have signed a Deed of Variation dated 6 March 2023 which amends the terms of the deferred consideration and completion net asset adjustment as outlined below.\n \n \n \n \n \n \n ·\n \n \n \n \n £3.625 million payable on 21 October 2025 (being the £5.125 million consideration reduced by the £1....