Revolution Beauty has acquired Medichem Manufacturing, one of its long-term suppliers. It is Revolution Beauty’s first acquisition following its IPO in July this year and provides the business with its own integrated manufacturing facility which, it says, will allow it to improve margins as well as gain control of its supply chain. Medichem’s primary client has been Revolution Beauty which accounted for some 90 per cent of its revenues in the year to December 2020. It operates an R&D lab, bulk manufacturing, warehousing and distribution.
Adam Minto, CEO of Revolution Beauty Group said: “The intention to acquire Medichem was disclosed at the time of our IPO, and I am pleased to announce today that we are delivering against our strategy and exercising our option to acquire this highly complementary manufacturing business. By vertically integrating Revolution Beauty in this way and taking manufacturing in-house for the first time, we will have even more control of our supply chain, allowing us to improve productivity, our cost base and margins, while being earnings accretive.”
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