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Zeus acted as Financial Adviser to Revolution Beauty on its acquisition of Medichem Manufacturing

Zeus acted as Financial Adviser to Revolution Beauty Group plc (“Revolution Beauty”, or the “Group”) in connection with its £23.0 million acquisition of Medichem Manufacturing Ltd (“Medichem”), a British manufacturer of hair and beauty products.

Company information

Founded in 1992, Medichem is a long-standing supplier of haircare and skincare products to Revolution Beauty, manufacturing all products from its UK facility. Medichem’s end-to-end operations include an R&D laboratory, bulk manufacturing, warehousing and distribution, and it employs more than 170 people. During its last financial year to 31 December 2020, Medichem reported audited revenues of £13.4 million and profit before tax of £1.6 million.

The deal is Revolution Beauty’s first acquisition and provides the Group with its own, fully-owned and vertically integrated manufacturing business. The acquisition of Medichem, which the company expects to be significantly earnings enhancing for the financial year ending 28 February 2023, will enable the Group to enhance its margins, increase control of its supply chain as well as enhance productivity.

Revolution Beauty, is an AIM quoted global mass beauty and personal care business which operates a multi-brand, multi-category strategy and sells its products both DTC via its e-commerce operations, and in both physical and digital retailers through wholesale relationships. Zeus also acts as Revolution Beauty’s Nominated Advisor and Broker.

Adam Minto

Co-Founder and CEO of Revolution Beauty

The intention to acquire Medichem was disclosed at the time of our IPO, and I am pleased to announce today that we are delivering against our strategy and exercising our option to acquire this highly-complementary manufacturing business. By vertically integrating Revolution Beauty in this way and taking manufacturing in-house for the first time, we will have even more control of our supply chain, allowing us to improve productivity, our cost base and margins, while being earnings accretive.

Jordan Warburton

Director of Corporate Finance, Zeus

We are delighted to have advised Revolution Beauty on its first acquisition. It has been a pleasure to work with the team again and assist in delivering the Group’s growth strategy. We wish both Revolution Beauty and Medichem every success for the future.

Contact

If you would like further information, please get in touch with our team.

Nick Cowles Co-Head of Investment Banking+44 (0) 161 393 1977LinkedIn Scan with your phone camera to add to contacts Download vCard
Benjamin Robertson Head of Equity Capital Markets+44 (0) 203 829 5625LinkedIn Scan with your phone camera to add to contacts Download vCard

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