LONDON (ShareCast) - (ShareCast News) - Swallowfield, a supplier of personal care and beauty products, has agreed to buy fellow beauty supplier The Brand Architekts for £11m.
The acquisition is to continue with Swallowfield's owned brand ambitions. Brand Architekts manages a portfolio of mid-premium beauty and personal care brands sold in UK high street retailers. Brand Architects had revenues of £10.7m in the 2016 financial year.

Following Swallowfield's acquisition of The Real Shaving Company in 2015 and own brand developments, the company reported revenues of £27.5m from 9 January to 1 March this year.

Swallowfield will raise £8.6m on a conditional placing with N+1 Singer as its broker to part fund the acquisition. At 155p per ordinary share, placing was oversubscribed with new and existing shareholders.

"Brand Architekts has built a very successful stable of brands that will complement our developing owned brand business," Chris How, Chief Executive of Swallowfield said.

"By combining the two businesses we believe that we can leverage both existing skill sets, including product development, R&D, supply chain, digital marketing, and online sales, to the benefit of all stakeholders. It further strengthens our business model of building two complimentary value streams (core contract manufacturing and owned brands) on one single common capability platform."

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