Warpaint has acquired beauty product supplier Brand Architekts Group.
The owner of W7 and Technic made a recommended offer to acquire the entire issued ordinary share capital of Brand Architekts, which valued the company at £13.88m.
Under the terms of the offer, each shareholder will receive 48p per share.
The brand owner claimed its acquisition will enhance Brand Architekts' profitability as part of a “larger, successful health, beauty and personal care business”.
Warpaint said in a statement issued to the London Stock Exchange: “Warpaint has a successful strategy of focusing on growing profitable sales of its branded products globally, whilst increasing overall margins.
“This has been achieved through increasing sales with Warpaint's existing retail customers and winning new major retailers.”
Warpaint added that the level of overheads relative to the scale of Brand Architekts was “inefficient and has impacted profitability”.
“Warpaint believes that the acquisition will provide the opportunity to generate cost synergies and reduce overheads to a more efficient level which should increase Brand Architekts' profitability,” the statement continued.
“The Warpaint board believes that the acquisition at this time is an exciting and relatively low-risk opportunity to further bolster Warpaint's growth opportunities.”
Warpaint London previously acquired UK-based colour cosmetics company Retra Holdings in 2017.
The company raised £21.2m through a placing of up to 11,157,894 new ordinary shares at a price of 190p per share of 25p each.
Retra is the owner of make-up brands Technic, Body Collection and Man’s Stuff, and also produces cosmetics for high-street retailers including Asda and Catalan.
Warpaint said revenues and profits before tax from Retra grew by 55% and 123% respectively between the years ended 31 December 2017 and 31 December 2023.