Cosmetics company Warpaint London has confirmed the acquisition of beauty brand specialist Brand Architekts in a deal valued at approximately £13.9 million. The acquisition will see Warpaint London, the parent company of makeup brands W7 and Technic, acquire the entirety of Brand Architekts’ issued and to-be-issued share capital.
Under the terms of the agreement, Brand Architekts’ shareholders will receive 48p per share, marking a 100% premium over the company’s closing share price on December 4. The deal will position Warpaint London to expand its portfolio and strengthen its market presence.
As part of the transaction, Warpaint London also announced a placing to raise £14 million and a retail offer for £1 million. The company views the acquisition as a strategic opportunity to enhance growth prospects heading into the new year, with an emphasis on applying its established supply chain and distribution channels to increase efficiency and profitability at Brand Architekts.
Sam Bazini, CEO of Warpaint London, commented that the acquisition was a “highly attractive” opportunity, noting the complementary nature of Brand Architekts’ brands to Warpaint’s existing lineup. He added that the company expected to leverage its expertise to optimize the performance of the acquired business.
Warpaint London’s 2024 trading has been in line with expectations, driven by strong sales in the U.S., particularly from a larger order with Walmart. The company is also in discussions with major retailers across Europe, the U.S., and the U.K. to expand its retail presence. Looking ahead, Warpaint projects further growth in 2025, driven by new retail placements in stores like Superdrug and Tesco.
Brand Architekts, which recently reported a decline in sales and a strategic shift to focus on fewer, larger brands, posted a 15% drop in revenue for the year ending June 30, with sales falling to £17 million. Despite this, the company’s gross profit margin increased by 1.5% to 41.2%.
Roger McDowell, chair of Brand Architekts, emphasized that the board recognized the value of the cash offer, particularly in the current uncertain economic climate. McDowell stated that the acquisition would strengthen the combined business, benefiting shareholders, customers, and employees alike. The Brand Architekts’ board unanimously recommended the offer to its shareholders.
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