Its largest acquisition to date, ADA Cosmetics, a German manufacturer and supplier of hotel cosmetics, has bought its UK rival Pacific Direct. It is predicted the acquisition will cause ADA’s annual revenue to rocket to approximately €100m.
Pacific Direct manufactures and supplies branded guest toiletries and luxury hotel amenities for hotels, cruise liners and airlines in more than 120 countries. Among the brands it supplies are: Floris, Penhaligon’s, The White Company, lubatti and Acqua Di Parma.
ADA CEO Wilhelm Könning said: “Pacific Direct and ADA are a perfect match. “Pacific Direct’s luxury brands will be a perfect enhancement to ADA’s established product portfolio. At the same time we will provide access to new customers and contacts. International hotel chains, in particular, will benefit from the pooling of our market know-how as well as from optimisations in service and sales.”
Through the takeover, ADA hopes to expand its business in Pacific Direct’s key markets of the UK, and Asia and the Near East. Pacific Direct generates roughly a third of its revenue in Asia and the Near East, a third in the UK and 20% in the US.
George Allan, CEO of Pacific Direct, added: “Pacific Direct has built a strong position in the premium hotel cosmetic products market. We are delighted to have found an established partner in ADA Cosmetics that will help further the development of Pacific Direct with its industry expertise and innovation capability.”
