LONDON, UK: Silverwood Brands plc, an enterprise firm established to make investments primarily in branded consumer businesses, has acquired interests in two consumer manufacturers comprising Lush, a UK headquartered worldwide cosmetics retailer, and Sonotas, a Japan-based skincare manufacturer.
Silverwood has conditionally acquired roughly a 19.8% stake (“Lush Sale Shares”) in every of Lush Cosmetics Limited (LCL) and Lush Cosmetic Warriors (LCW), collectively (Lush) from Executive Director, Andrew Gerrie and his spouse Alison Hawksley.
In addition, Silverwood Brands has conditionally acquired 90% of the share capital of Sonotas Holdings Corporation and 100% of Sonotas Corporation from Executive Director, Andrew Tone and different sellers.
Silverwood has entered right into a sale and buy settlement to buy the Lush shares. The total consideration for the acquisition of the Lush shares quantities to roughly £216.8 million to be satisfied via the issue and allotment of 228.212 million new ordinary shares to the Lush distributors on the price of 95p per share, being the closing price of a Silverwood share the enterprise day instantly earlier than this announcement.
Lush is a producer and vendor of fresh handmade skincare items and beauty products. LCL is the working firm accountable for the administration of the enterprise while CWL owns the rights to the Lush model and controls the analysis and development of new products.
Lush operates retail outlets in forty eight countries and has manufacturing facilities in 6 nations. It produces a selection of magnificence and private care merchandise which include: creams, soaps, shampoos, bathe gels, lotions, moisturisers, fragrances, scrubs, toothpaste tablets, masks and different cosmetics for the face, hair, and physique utilizing solely vegetarian or vegan recipes.
Lush is a British success story and is now a well-established model with an outlined global footprint and the potential to meet strong growth targets within the future. The acquisition final year of its North American partner enterprise has paved the way for a considerable increase in income and stronger money flows over the short-term in addition to the chance to expand its bodily and on-line presence within the US and Canadian market.
Silverwood Brands has conditionally agreed to buy 90% of the total issued share capital of Sonotas Holdings along with 100% of the total issued share capital of Sonotas Corporation from Andrew Tone, a Director of the Company and sure different sellers.
In addition, Silverwood has entered right into a put and name option association with Andrew Tone which entitles the Company to buy (or for him to require the Company to acquire) from him the 10% balance of the total issued share capital of Sonotas Holdings throughout the 6 month interval commencing forty eight months from the date of completion.
On completion of the Sonotas acquisition, roughly £417,000 in money and roughly £15.6 million in Silverwood shares will be paid to the Sonotas vendors.
The Sonotas companies comprising Sonotas Corporation and Sonotas Holdings Corporation are headquartered in Japan and they manufacture, sell, import and export skincare products. They buy uncooked supplies in-house and outsources manufacturing through exterior factories. Sonotas owns two manufacturers Steamcream and Cigarro. These manufacturers are sold through wholesale gross sales at directly managed stores, official on-line stores, limited-time shops, limited-time shops at division shops and selection shops such as Takashimaya, Mitsukoshi, and Daimaru. The Sonotas administrators include Andrew Tone (Managing director), and Shizuka Tagami.
Paul Hodgins, Non-Executive Director of Silverwood, said: “I am delighted to announce the transactions relating to Lush and Sonotas. Both are tremendously thrilling companies with a huge quantity of growth potential. Silverwood is a quickly rising business, with a team of extremely skilled independent directors, and we’re entrepreneurs ourselves.
We have nice respect for the strong values and track records of each these extremely entrepreneurial companies. We look ahead to engaging their administration to present support and so as to add worth the place we can, and in doing so additionally present strong worth to our personal quickly rising shareholder group.”