Recently ASX-listed Skin Elements has acquired a Perth-based therapeutic and cosmetic skin care products company for $1 million in cash and scrip.
Perth-based Skin Elements said it would pay $400,000 in cash and $600,000 in shares to acquire McArthur Skincare, with the deal to expand its range to 29 products covering therapeutic skin care, sun care and cosmetic skin care.
Following completion of the acquisition, Filipo Giglia will represent McArthur on Skin Elements’ board as a non-executive director.
McArthur was founded in Perth in 2010 and has generated $22 million in revenue over that time.
Its products, which are manufactured in Brisbane, are designed to provide symptomatic relief for psoriasis, dermatitis, eczema and rashes, minor burns and wounds, and muscle, joint and rheumatic pain.
“We see this as a company changing acquisition for Skin Elements,” Skin Elements managing director Peter Malone said.
“It is not only highly complementary and immediately value accretive, but the shared core values of both companies in their commitment to delivering high quality, natural skin care products makes the acquisition an ideal fit – and positions the company for substantial growth.
“We now look forward to working through our diligence process in a timely manner, to be in a position to complete the acquisition and commence the integration of the McArthur Skincare business.
“Based on our research there is a demand for pawpaw cosmetics and therapeutic products and we are delighted for these to be a part of our product range.”
Skin Elements shares were 21.4 per cent higher to 17 cents each at midday.
