Swallowfield, a UK cosmetics and personal care supplier and the creator of Bagsy, has confirmed the ball is in motion to acquire Brand Architekts, pending shareholder approval.
Brand Architekts owns a portfolio of massage beauty brands, many of which already use Swallowfield’s services. Key brands in the portfolio due to transfer to Swallowfield, if the acquisition is approved, include: Dirty Works, Kind Natured, Argan, Happy Naturals, DrSalts, Superfacialist and Senspa. Brand Architekts generated net sales of £10.7m in the year to January 2016.
Swallowfield’s directors believe a takeover will be a growth-booster, in part due to the fact that Swallowfield will be able to sell its current brands through Brand Architekts distributor network.
In a preliminary statement shared with Cosmetics Business, Swallowfield said: “We believe that the acquisition will make Swallowfield stronger financially and in doing so increase our ability to invest in our manufacturing facilities, our R&D resources and our quality processes. Furthermore, it can only improve our ability to understand consumer trends and retail channels, all of which can help make us a better supplier to our core customer base.”
More details will be made following shareholder approval of the deal, which Swallowfield expects to receive at a General Meeting on 27 June.