Revolution Beauty takes manufacturing in-house with Medichem acquisition
Revolution Beauty Group
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13:49 10/01/25
Revolution Beauty announced on Wednesday that its Revolution Beauty Holdings subsidiary has acquired the entire issued share capital of Medichem Manufacturing for £23m, subject to a net assets adjustment.
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The AIM-traded firm said Medichem was a long-standing supplier of haircare and skincare products to Revolution, manufacturing all products from its UK facility.
It said Medichem's end-to-end operations included a research and development laboratory, bulk manufacturing, warehousing and distribution, employing more than 170 people.
During its last financial year ended 31 December, Medichem reported audited revenues of £13.4m and a profit before tax of £1.6m.
Revolution said that, given the strong year-to-date growth in its own haircare and skincare categories, Medichem had continued to perform well in 2021.
Medichem had a limited number of customers other than Revolution, which had contributed more than 90% of Medichem's revenue in the calendar year to date.
The option to acquire Medichem was disclosed at the time of Revolution’s initial public offering, with the board saying the announcement on Wednesday demonstrated its delivery against the strategy it set out at the time of its listing.
It was Revolution Beauty's first acquisition, providing it with its own fully-owned and vertically-integrated manufacturing business.
The company said it would lead to enhanced margins, increased control of its supply chain and enhanced productivity.
Revolution said it was expecting the acquisition to be “significantly” earnings-enhancing for the financial year ending 28 February 2023.
“The intention to acquire Medichem was disclosed at the time of our IPO, and I am pleased to announce today that we are delivering against our strategy and exercising our option to acquire this highly-complementary manufacturing business,” said joint founder and chief executive officer Adam Minto.
“By vertically integrating Revolution Beauty in this way and taking manufacturing in-house for the first time, we will have even more control of our supply chain, allowing us to improve productivity, our cost base and margins, while being earnings accretive.”
At 0808 BST, shares in Revolution Beauty were up 1.07% at 122.3p.