Cosmetics business Warpaint (W7L) is making progress on its international expansion ambitions via the acquisition of its US distributor Marvin Leeds Marketing Services. Management reckons the deal will give greater control over North American sales and allow for further growth in the US. The US-based entity should also give Warpaint the opportunity to expand into Central and South America.
Warpaint will pay $2.16m (£1.68m) in total mainly in cash, although this could be adjusted depending on the value of net assets. Around two-thirds of Leeds Marketing’s revenue comes from distribution of Warpaint, and the remaining third from other cosmetics brands. It reported sales of $5.9m during 2017 and $0.4m in pre-tax profit, with $1.1m of net assets.
