Warpaint London PLC (AIM:W7L) has unveiled a bid to buy challenger beauty firm Brand Architekts Group PLC (LSE:BAR) for £13.88 million.
Some 48 pence will be paid per share, representing a 100% premium to Brand Architekts’ closing value on Wednesday, Warpaint said in a statement.
Brand Architekts shareholders could elect to receive 0.0916 per share newly issued Warpaint stock as an alternative, it added.
“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,” Warpaint chief executive Sam Bazini commented.
Brand Architekts chair Roger McDowell added the bid offered “certainty of value [...] against the backdrop of an uncertain macro-economic environment”.
Irrevocable undertakings to back the offer had already been secured from the female skincare, self-tan and male grooming product maker’s directors and largest shareholder, Warpaint said.
Warpaint separately unveiled plans for a proposed placing to raise £15 million to repay loans taken to fund the offer.
“The proposed acquisition [...] provides an attractive strategic opportunity to supplement our ongoing international organic growth,” Bazini added, with the deal set to close early next year.