Nov 13, 2017
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Warpaint buys smaller peer Retra to expand in gift market

Nov 13, 2017

Warpaint London revealed an important acquisition on Monday as the fast-expanding cosmetics company bought Retra Holdings. It also announced a share placing to raise just over £21 million.

Warpaint London

Warpaint owns the W7 brand, among others, and has been growing fast since its recent IPO. Its purchase of Retra will give it greater exposure to other fast-growing part of the cosmetics market with its newly-acquired unit specialising in gift sets. Some 51% of its sales last year were gift sets, which it mainly makes for big-league high street players Boots and Superdrug. 

The remaining 49% of its business is made up of its own brands, including Technic, Body Collection and Man's Stuff, as well as the ‘white label’ cosmetics it produces for several major high street retailers including Asda and Matalan.
It’s profitable with pre-tax profit last year of £2.3 million on sales of £17.5 million so will be immediately earnings enhancing for Warpaint, even before any expected synergies are factored-in.

The new owner is paying a maximum for £18.2 million for the firm so the purchase will be covered by the proceeds of the share placing, 

In a statement, Sam Bazini and Eoin Macleod, joint CEOs, said: "This acquisition will provide Warpaint with access to new customers and suppliers, increased numbers of product development personnel and additional exposure to the gifting market, an area of increasing focus. The Acquisition will help to accelerate Warpaint's growth both domestically and internationally."

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