Warpaint London, the cosmetics company known for its W7 and Technic makeup brands, has today informed markets of its agreement to acquire the entire issued and to be issued share capital of beauty brand specialist Brand Architekts.
The terms of the acquisition state that each shareholder will receive 48p per share, valuing Brand Architekts at approximately £13.9m on a fully diluted basis—a 100% premium over the closing price of Brand Architekts' shares as of 4 December, as reported by .
In addition, Warpaint London has announced plans to raise funds through a placing and retail offer, aiming to secure £14m and £1m respectively. This move is part of Warpaint London's strategy to pursue "exciting and relatively low risk" investments to enhance growth prospects in the upcoming year.
Sam Bazini, CEO of Warpaint, described the acquisition as an "attractive strategic opportunity" that will complement the company's existing portfolio. "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," Bazini commented.
Warpaint London announced in September that trading in 2024 had been consistent with expectations, particularly noting a strong performance in the US due to a larger Walmart order. The company also revealed it was in "talks with other large new retailers in Europe, the US and the º£½ÇÊÓƵ with a view to stock the group’s products."
In 2025, the management anticipates further growth with the introduction of W7 colour cosmetics into a significant number of new Superdrug stores, as well as a 150-store expansion of the Group’s W7 impulse offering in Tesco stores
However, in October, Brand Architekts reported a drop in sales as it shifted focus to fewer, larger brands. The firm posted an underlying loss of £0.4m compared to a loss of £1.2m for 2023, while its gross profit margin rose by 1.5 per cent to 41.2 per cent.
Sales for the year ending 30 June were £17m, a decrease of 15 per cent from £20.1m in 2023. Roger McDowell, chair of Brand Architects, stated that the board "recognises the certainty of value" of the cash offer, especially in an uncertain economic climate.
McDowell added: "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."
