Acquisition sees personal care top of the agenda
The transaction sees Migros, through its subsidiary Mibelle AG, acquiring a 70% stake for an initial consideration of £18 million. The remaining 30% held by GRI Group is subject to an option agreement which has the potential to deliver further substantial value.
With annual sales of €14.5 billion and over 80,000 employees, Migros is one of the largest food and non-food retailers in Europe.
In addition to its retail operations, the group also has substantial interests in manufacturing, wholesaling, financial services, travel and leisure. Migros’s other UK subsidiaries include the specialist tour operators Inghams and Inntravel.
Hallam Beauty develops and manufactures cosmetic and personal care products on behalf of brand owners and major supermarket groups. Its portfolio includes a comprehensive range of haircare and skincare formulations including specialist areas such as sun protection, baby skincare and anti-bacterial products.
The business was acquired out of administration by Sheffield based GRI Group in 2005, following which it has grown to become one of the leading players in the sector, generating annual revenues in excess of £36 million.
Don Gray and David Forrest led the BHP Ingram Forrest team that advised on the transaction. Don Gray commented “We are delighted to have advised Migros on this strategically important acquisition. The deal gives Mibelle direct access to the UK market and also provides an opportunity to leverage its category-leading product development skills with Hallam Beauty’s highly regarded manufacturing capabilities.
From a wider perspective, this is the second substantial cross-border deal that we have advised on in the space of as many months and is further encouraging evidence of the improvement in the M&A markets.”