Natural skin care provider, Trilogy, gets ready to acquire 80% of Lanocorp New Zealand, news agency Reuters reveals. The deal amounts to a price of $12.5 mn (€7.9 mn), along with additional earn out payments that will be based on earnings targets.
Amid suggestions of rising raw material costs, Trilogy has also stated it will buy Lanocorp’s affiliated Australian company for $1.3 mn (€825,000).
The Auckland-based naturals firm will pay the $12.5 mn (€7.9 mn) amount upfront to Lanocorp, which owns a portfolio of beauty brands including Lanocreme, Tiaki and By Nature.
Trilogy also has the option to purchase the remaining 20% after three, four or five years.
The purchase of Lanocorp enables Trilogy to make in-roads and connections with consumers and suppliers in Australia and New Zealand.
“Lanocorp gives us geographic diversity with greater exposure to the US market and allows us to pursue products and channels outside the reach of our current portfolio," announced Grant Baker, Chairman, Trilogy.
"The acquisition provides further scale as we leverage our proven success with growing brands locally and in key international markets," Baker added.
“Lanocorp is an agile personal care company that has taken immediate advantage of market trends and retailer opportunities as they present themselves in international markets,” added Angela Buglass, Chief Executive, Trilogy.
In September 2016, the company found a distributor in China to provide beauty supplies through its e-commerce platform. As a result, following its growth, Trilogy created its first online flagship outlet.
Trilogy promotes its Rosehip Collection, Rosehip Oil Antioxidant, CoQ10 Booster Oil, Radiance Serum and Radiance Mask online. In addition, the Auckland-based cosmetics name has released tailored products for Japanese and South Korean consumers.
The items have been designed to suit humid climates and as a result, contain delicate formulations of its face sprays and rosehip oils.
In the year through to 31st March 2017, Trilogy increased its annual earnings by 19% to $19.4 mn (€12.3 mn).
While positive beauty product sales helped to minimise the financial impact of using expensive raw materials, the costs associated with those materials are expected to increase.
Recently, Trilogy has fixed its sights on expanding its sales in Asia through exporting its natural skin care cosmetics to eight countries in Asia.