29 Jun 2017

Trilogy pays $13.8m for stake in fellow NZ beauty business

10:51 am on 29 June 2017

Skincare and fragrance company Trilogy International is buying the majority of Christchurch-based beauty products maker Lanocorp.

Trilogy CEO Angela Buglass

Trilogy CEO Angela Buglass Photo: SUPPLIED

It is paying a total of $13.8 million for 80 percent of the South Island firm, which makes skincare, bodycare and hair products, such as By Nature and Rata & Co, and its Australian business.

Trilogy may also make additional payments depending on Lanocorp's profits, and has an option to buy the remaining 20 percent in the next few years.

The chair of Trilogy, Grant Baker, said Lanocorp complemented the Trilogy portfolio.

"It gives us geographic diversity with greater exposure to the US market and allows us to pursue products and channels outside the reach of our current portfolio... the acquisition provides further scale for TIL as we leverage our proven success with growing brands locally and in key international markets," he said.

The deal is being funded by existing bank debt and should be completed next week.

The company said it expected Lanocorp to boost its earnings in the 2018 financial year.

Trilogy shares rose nearly 5 percent on the news.