Tuesday 18th August 2015 |
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Trilogy International, the skincare products and scented candle maker, agreed to buy privately held CS Company, New Zealand's largest independent importer and distributor of fragrances, cosmetics and toiletries, for $37 million plus any earn out payments. The purchase will be debt funded.
Auckland based Trilogy will pay $34 million in cash, $1.5 million on both the first and second anniversaries of the acquisition, and additional payments on the third anniversary should the business meet profit targets for the 2016 and 2017 financial years, it said in a statement. CS owners, chief executive Ken Millar, chief financial officer Ray Guilford and senior executive Dianne Reynolds, will remain in the business, it said.
Trilogy, whose brands include skincare range Trilogy and home fragrance brand Ecoya, expects the additional earnings from CS will help fund its future expansion. Earnings from CS will be contributed to Trilogy from the completion of the acquisition this month.
CS is forecast to make $41 million of revenue and $6.4 million of earnings before interest, tax, depreciation and amortisation in the year ending March 31, 2016. Trilogy is established in Australia and New Zealand is eyeing future growth in key international markets including the UK, Asia and the US.
Trilogy shares last traded at $1.40 and have gained 94 percent so far this year.
BusinessDesk.co.nz
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