Matas signs agreement to acquire Kosmolet A/S
Today, Matas signed an agreement to acquire 100% of the shares in Kosmolet A/S, the company behind the successful Danish makeup brand Nilens Jord. Known for its allergy-friendly and natural profile, Nilens Jord is the best-selling makeup brand carried by Matas. The brand has a dedicated and loyal customer group spanning all age groups.
Gregers Wedell-Wedellsborg, CEO of Matas A/S, states:??With the acquisition of Nilens Jord, we are adding the best-selling makeup brand carried by Matas to our private label portfolio. Together, we will be able to accelerate product innovation, expand our product range and provide improved accessibility in the years ahead for the benefit of the customers. At the same time, we are welcoming a successful and financially sound business with strong development potential and a competent organisation to our family?.
The transaction
- The transaction prices Kosmolet A/S at an initial value of DKK 145 million as well as a earn out payment of up to DKK 20 million.
- The initial purchase price of DKK 145 million will be paid partly in cash (DKK 135 million) and partly in the form of Matas shares (DKK 10 million) at closing.
- The completion of the transaction is subject to the satisfactory completion of a confirmatory due diligence, which is expected to be finalised in June 2019.
- The acquisition is expected to entail transaction and restructuring costs of about DKK 5 million in 2019/20, which will be recognised under exceptional items.
- A stronger portfolio of private label brands
- An increased share of revenue from private label brands with efficient operations and attractive margins
- A stronger position in the rapidly growing market for clean and allergy-friendly products
- New platform for growth and business development through the acquisition of a business with strong product innovation capabilities and solid historical results.
- According to its most recently published annual report, Kosmolet A/S generated EBITDA of DKK 19.4 million in financial year 2017/18 (1 June 2017 ? 31 May 2018).
- Kosmolet A/S is headquartered in Farum, only few kilometres from Matas? headquarters in Aller?d. Kosmolet A/S will continue as an independent business after the acquisition and will remain based in Farum.
- Kosmolet A/S has approximately 35 full-time employees.