US$2.16MLN CASH HAS BEEN ACQUIRED BY WARPAINT LONDON FROM ITS US DISTRIBUTOR - Soul 2 Soul Mates Blog

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8/03/2018

US$2.16MLN CASH HAS BEEN ACQUIRED BY WARPAINT LONDON FROM ITS US DISTRIBUTOR


US$2.16MLN  CASH HAS BEEN ACQUIRED BY WARPAINT LONDON FROM ITS US DISTRIBUTOR

Warpaint noted that the US is the world's largest colour cosmetics market by value, adding that it believed the acquisition would allow it to have greater control over its North American sales activities
Warpaint London plc (LON:W7L) saw its shares gain on Friday as the colour cosmetics specialist supplier announced the acquisition of its US distributor Marvin Leeds Marketing Services for US$2.16mln in cash.

The AIM-listed firm - which owns the W7 and Technic brands - said New York-based Leeds Marketing currently derived about two-thirds of its revenue through the distribution of Warpaint's W7 products, with the remainder being through the sale of other branded cosmetics.
Leeds Marketing was Warpaint’s exclusive distributor in the US until January and sold its products to major 'off-price' retail groups in North America, including the TJX Companies and Bealls Outlet Stores.

It said that recently, Leeds Marketing had opened new accounts for W7 and other Warpaint brands with a number of retailers in the US, including Century 21, Forever 21, and Macy's Backstage.

Warpaint noted that the US is the world's largest colour cosmetics market by value, adding that it believed the acquisition would allow it to have greater control over its North American sales activities.

For the year ended 31 December, Leeds Marketing had revenue of US$5.9mln and adjusted profit before tax of around US$0.4mln.

In a statement, Warpaint’s joint chief executives of Warpaint, Sam Bazini and Eoin Macleod said: "We see the acquisition of Leeds Marketing as a further important milestone in our growth story.

"Since admission to AIM, we have focused on international expansion and the US is central to that strategy.”

In late afternoon trading on Friday, Warpaint shares were 4.5% higher at 230p, well above the 97p placing price when the firm floated on AIM on 30 November 2016.


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