Silverwood Brands has acquired a 19.8% stake in the high street retailer to help boost its UK expansion plans and future-proof the business
Silverwood Brands has snapped up a 19.8% stake in the UK high street retailer, acquiring around £217m in shares.
The investment company will engage Lush’s management team, stakeholders and other shareholders to explore ways they can maximise value for all parties.
"Silverwood's directors have an extensive professional network and significant experience in the consumer brands space,” the company said.
“[This] should prove useful in generating new ideas to invigorate and strengthen the Lush brand.”
Lush is looking to grow and future-proof its business after a challenging couple of years.
In the year ended 30 June 2021, Lush's turnover was £408m, according to accounts filed at Companies House.
Due to the impact of Covid-19 and lockdown restrictions, this was a 6.6% dip on the previous year.
In April 2022, Lush bought out its US partner in a bid to almost double the size of its UK sales.
The retailer also pledged to invest £7.6m into opening new stores and rebuilding its British operations, which were hit hard during the pandemic.
The UK expansion is already underway.
Two new warehouse units in Poole have opened to further establish the brand’s manufacturing and distribution hub.
Paul Hodgins, Non-Executive Director of Silverwood, said Lush is an exciting company “with a vast amount of growth potential”.
He added: "Silverwood is a rapidly growing business, with a team of highly experienced independent directors, and we are entrepreneurs ourselves.
“We have great respect for the strong values and track records of this highly entrepreneurial company.
"We look forward to engaging [Lush’s] management to provide support and to add value where we can.
“And, in doing so, also provide strong value to our own rapidly growing shareholder group."
The acquisition will be satisfied via the issue and allotment of 228,212,632 new ordinary shares to the vendors at a price of 95p per share.
This is not Silverwood Brands first foray into the beauty sector.
The company has been building up its beauty portfolio this year, acquiring nail care brand Nailberry for £6m in October.
It has also purchased a 90% share capital in Japanese skin care maker Sonotas Holdings.
This involved £417,000 cash and around £15.6m in Silverwood shares to be paid to Sonotas’ vendors.