Revolution Beauty acquires supplier Medichem Manufacturing for £23m

By Austyn King 27-Oct-2021

The Gen Z favourite beauty brand hopes its first-ever acquisition will boost productivity as it

Revolution Beauty, the UK-based Gen Z favourite beauty brand, has completed its acquisition of long term supplier Medichem Manufacturing for £23m as it pushes ahead with its long term expansion plans.

The deal, which was first revealed when the company announced its 'milestone' £495m IPO earlier this summer, is Revolution's first-ever acquisition, and will provide the company with its own in-house manufacturing business to boost both productivity and profits.

Offering greater control of its supply chain, the acquisition will provide Revolution with access to Medichem's entire UK-based operations, including its R&D laboratory, bulk manufacturing, warehousing and distribution, where it currently employs more than 170 people.

Medichem reported revenues of £13m in the last financial year, aided by the growth of Revolution's hair and skin care categories, and is predicted to enhance the company's projected earnings by 2023 by £3m.

Speaking about the deal, Adam Minto, CEO and co-founder of Revolution Beauty Group, said: "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.

“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." 

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Today, Revolution Beauty is sold across more than 11,000 retailers across five continents worldwide, including Boots, Superdrug and Asos, while it has also boosted its profile with campaigns on TikTok and a sponsorship deal with hit reality series RuPaul's Drag Race Down Under.