LONDON: Warpaint London plc reached agreement on the terms and conditions of a recommended cash offer to acquire Brand Architekts Group plc.

Under the terms, each Brand Architekts shareholder will be entitled to receive 48 pence in cash per share. The acquisition values Brand Architekts’ entire issued, and to be issued, ordinary share capital at approximately £13.88 million on a fully diluted basis.

Brand Architekts is a beauty brand specialist which offers a portfolio of problem-solving challenger beauty brands, sold throughout the UK and internationally.

Warpaint is a specialist supplier of colour cosmetics and the owner of the W7 and Technic brands.

Warpaint has a successful strategy of focusing on growing profitable sales of its branded products globally, whilst increasing overall margins. This has been achieved through increasing sales with Warpaint’s existing retail customers and winning new major retailers. T

The Warpaint Board believes that there continues to be significant growth opportunities for Warpaint and accordingly, the Warpaint Group remains focused on continuing to execute on this organic growth strategy.

Having followed Brand Architekts for some time, as another company admitted to trading on AIM operating in a similar sector, the Warpaint Board believes that the Acquisition at this time is an exciting and relatively low risk opportunity to further bolster Warpaint’s growth opportunities.

Sam Bazini CEO of Warpaint, said: “The proposed acquisition of Brand Architekts provides an attractive strategic opportunity to supplement our on-going international organic growth by integrating Brand Architekts’ highly complementary brands into Warpaint’s portfolio and leveraging the enhanced range of brands across a wider number of customer relationships.

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. We are looking forward to working with the Brand Architekts team to realise Brand Architekts’ potential.”

Roger McDowell, Chair of Brand Architekts, said: “The Brand Architekts Board has worked hard to deliver on the Brand Architekts Group’s strategic priorities against a challenging environment and continues to have confidence in its brands and longer-term prospects. However, the Brand Architekts Board recognises the certainty of value of the Cash Offer at a 100 per cent. premium to the current share price, against the backdrop of an uncertain macro-economic environment. 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.”

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