The Gen Z favourite beauty brand hopes its first-ever acquisition will boost productivity as it
Revolution Beauty, the UK-based Gen Z favourite beauty brand, has completed its acquisition of long term supplier Medichem Manufacturing for £23m as it pushes ahead with its long term expansion plans.
The deal, which was first revealed when the company announced its 'milestone' £495m IPO earlier this summer, is Revolution's first-ever acquisition, and will provide the company with its own in-house manufacturing business to boost both productivity and profits.
Offering greater control of its supply chain, the acquisition will provide Revolution with access to Medichem's entire UK-based operations, including its R&D laboratory, bulk manufacturing, warehousing and distribution, where it currently employs more than 170 people.
Medichem reported revenues of £13m in the last financial year, aided by the growth of Revolution's hair and skin care categories, and is predicted to enhance the company's projected earnings by 2023 by £3m.
Speaking about the deal, Adam Minto, CEO and co-founder of Revolution Beauty Group, said: "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."
Today, Revolution Beauty is sold across more than 11,000 retailers across five continents worldwide, including Boots, Superdrug and Asos, while it has also boosted its profile with campaigns on TikTok and a sponsorship deal with hit reality series RuPaul's Drag Race Down Under.