27 Feb 2017 07:00
InnovaDerma PLC
("InnovaDerma", the "Company" or the "Group")
Acquisition of Stevie K and Charles + Lee brands
InnovaDerma (LSE: IDP), a UK developer of 'at-home' and clinically proven treatments for hair loss, hair care, self-tanning and skin rejuvenation, is pleased to announce it has acquired the Intellectual Property and Assets of the 'Stevie K' and 'Charles + Lee' brands from Stevie K Cosmetics Pty Ltd and Charles + Lee Pty Ltd (the "Vendors"). Stevie K is an Australian made line of cosmetics and Charles + Lee is a range of men's skincare (the "Acquisitions").
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In line with InnovaDerma's acquisition model, Kate Fissenden, the founder of Stevie K and Charles + Lee brands, will be incentivised as a General Manager in the Group, responsible for the growth and development of both brands. Kate has more than 10 years' experience with some of Australia's leading beauty brands and has expertise in product development and brand management. To support the success of the brands, the minimum term of Kate's employment contract with the Group is three years.
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The purchase price for the Acquisitions is AUS$50,000 (the "Purchase Price"). The Vendors have the option to convert the Purchase Price into ordinary shares of InnovaDerma within 14 days of completion. If the Vendors exercise the Option, it will be satisfied by the issuance of approximately 39,700 ordinary shares in InnovaDerma (the exact number of shares will be calculated based on the average market price of the shares).
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About Stevie K and Charles + Lee
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路 Stevie K is an award winning, mid-premium priced, bold range of cosmetics with strong branding and eye-catching packaging targeted at the irreverent individual in the Millennial and Generation Zero market. Founded in 2016, the brand is positioned as Australian made, cruelty free, high quality and edgy. Stevie K deliberately avoids conventional marketing channels and has strong association within the beauty and lifestyle digital platforms. It is well-suited for social media with its extensive range of striking colours and unconventional style. Announced twice as the "Best New Aussie Beauty Brand" by national print and digital media, Stevie K is currently sold online in Australia, the UK, and New Zealand. http://www.steviekcosmetics.com/
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路 Charles + Lee is an affordable alternative premium range of men's skincare, marketed as an effective and understated brand, containing natural and organic ingredients. It is cruelty free and has been certified by the Roundtable on Sustainable Palm Oil Association. The products are Australian made, currently sold online at the brand's own website and online at Urban Outfitters in Australia, New Zealand, the US, and Canada. http://charlesandlee.com
Benefits of the Acquisitions
The Company has previously stated its intention to acquire brands which are ready to market and complementary to its existing portfolio. There are significant opportunities for a number of commercial, operational and financial synergies, which are expected to create value for InnovaDerma's shareholders:
路 Stevie K and Charles + Lee are highly differentiated, innovative brands and provide the Company with entry into the alternative premium end of the make-up and men's skincare market;
路 There is existing and growing demand for high quality make-up and men's skincare which is ethical, natural and alternative. These concepts fit with the international perception of Australian lifestyle, and therefore the Company will seek to harness these as part of its marketing strategy;
路 Both brands are well-suited for social media and have already developed a strong following which is key to driving brand loyalty and revenue;
路 The current geographic footprint of the Acquisitions fits well with the Company's established presence in Australia, UK and the US;
路 With InnovaDerma's strong distribution network in nine countries and a growing Direct-to-Consumer ("DTC") Platform with proven social media campaigns, the Board believes there is an opportunity to grow revenues of the Acquisitions by accessing these home-grown channels;
路 The Board does not envisage significant integration costs arising from the Acquisitions;
路 The Company expects the Acquisitions to be revenue and earnings enhancing from the last quarter of the financial year.
Haris Chaudhry, Executive Chairman of InnovaDerma said:
"Stevie K and Charles + Lee are an excellent strategic fit for InnovaDerma and we are pleased to have acquired such highly differentiated brands which the Board believes will bring considerable international growth opportunities. We welcome Kate Fissenden to the Company and look forward to working with her to drive profitable growth in the future."
Further enquiries:
InnovaDerma Haris Chaudhry/Joe Bayer | 聽 +61 (0)3 9111 0071 |
Sole broker Hybridan LLP Claire Noyce | 聽 +44 (0)203 764 2341 |
Cardew Group Shan Shan Willenbrock David Roach Emma Ruttle | 聽 + 44 (0)20 7930 0777 |
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About InnovaDerma:
InnovaDerma PLC聽(LSE: IDP) specializes in the research, manufacture and marketing of clinically proven products in life sciences, beauty and personal care products. InnovaDerma has presence in the UK, US, Australia, New Zealand, Philippines, South Africa, Hong Kong and South Korea.
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www.innovaderma.com
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