Silverwood Brands recently made beauty industry headlines when the company bought Nailberry, the clean and vegan British nail brand, for AUD$10.4 million.
Mid-year, the UK investment player also acquired Balmonds, the UK sensitive skincare brand, for AUD$14.5 million. Founded in 2007 by Natalie Balmond as Pure Potions, the business was acquired three years ago by Andrew Gerrie, formerly of Lush and now CEO of Hotel Chocolat, the British luxury confectioner. He changed the name to Balmonds and kickstarted global expansion with dedicated websites in the US and China.
The two buyouts look like petty cash by contrast to Silverwood Brands latest moves to extend its footprint in the organic foods, wellness, lifestyle and leisure sectors. The company has acquired a 19.8 per cent stake in Lush in a sale and purchase agreement worth AUD$393.8 million.
UK-based Lush has built up a strong global business selling its fresh, hand-made skincare and cosmetic products. The company has retail outlets in 48 countries, including Australia, and its global turnover reached AUD$740.39 million for the fiscal year ended June 2021. In April, Lush bought out its US partner business to expand its bricks-and-mortar and online presence in the US and Canada.
In a simultaneously announced deal, Silverwood Brands has also entered the Japanese beauty market. The fast-expanding company has acquired Sonotas Corporation and Sonotas Holdings for AUD$756,726 in cash and AUD$28.3 million in Silverwood shares to be paid to the Sonotas owners.
Sonotas is headquartered in Japan and owns two skincare brands – Steamcream and Cigarro. Both are sold through own brand stores, online and pop-up stores in leading Japanese department stores, including Takashimaya and Daimaru.
I am delighted to announce the transactions relating to Lush and Sonotas, said Paul Hodgins, non-executive director of Silverwood Brands.
“Both are tremendously exciting companies with a vast amount of growth potential. Silverwood is a rapidly growing business, with a team of highly experienced independent directors and we are entrepreneurs ourselves.”
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