Silverwood has acquired a 19.8% stake in Lush Cosmetics in a £216.8 million deal, furthering its expansion into consumer businesses, specifically in the beauty sector.

WHO: Lush is a manufacturer and seller of fresh handmade skincare goods and cosmetic products. Lush operates retail outlets in 48 countries and has manufacturing facilities in six nations. It produces a wide range of beauty and personal care products, including: creams, soaps, shampoos, shower gels, lotions, moisturizers, fragrances, scrubs, toothpaste tablets, masks, and other cosmetics for the face, hair, and body, using only vegetarian or vegan recipes.

Silverwood Brands is a publicly listed business focused on identifying investment opportunities through the established network of its directors within, but not limited to, the food, organic food, wellness, lifestyle, and leisure sectors. The company intends to develop a diversified portfolio of consumer-facing brands and businesses, from established brands to smaller ventures.

WHY: Silverwood will use its investment in Lush as a platform for further expansion into consumer businesses, focusing on health and beauty, specialty foods, and other consumer-focused brand sectors. The deal represents a "significant addition" to the Silverwood brand portfolio, including Balmonds and Nailberry.

Silverwood intends to hold its stake in Lush long term and will allow Lush customers to invest in the British brand and "reap the benefits of their support."

IN THEIR OWN WORDS: Paul Hodgins, Non-Executive Director of Silverwood, said: "Lush is a British success story with a well-established brand and defined global footprint. We think there is considerable potential to meet strong growth targets in the future and are excited about the opportunities worldwide.

“This acquisition provides a solid platform for Silverwood to continue expanding its portfolio of fast-growing consumer brands. As entrepreneurs ourselves with significant expertise in building leading brands, we bring long-term, highly-engaged and supportive British growth capital to our portfolio while creating value for our own rapidly growing shareholder base."

DETAILS:

• Silverwood has conditionally acquired approximately a 19.8% stake ("Lush Sale Shares") in each of Lush Cosmetics Limited (LCL), the operating company responsible for the management of the business, and Lush Cosmetic Warriors (LCW), which owns the rights to the Lush brand and controls the research and development of new product, from Executive Director Andrew Gerrie and his wife Alison Hawksley.
• Silverwood has entered into a sale and purchase agreement to acquire the Lush shares. The total consideration for the acquisition of the Lush shares amounts to approximately £216.8 million, to be satisfied via the issue and allotment of 228.212 million new ordinary shares to the Lush vendors at the price of 95p per share, being the closing price of a Silverwood share the business day immediately before this announcement.
• In April 2022, Lush paid $143 million to take over its North American distribution partner, a move which will add 80% to the company's revenues.
• In October 2022, Silverwood Brands acquired Nailberry for total cash consideration of $10.4 million.