Trilogy buys 25% of Chile rosehip producer
Trilogy will pay $US2 million in cash and issue 2.6 million new shares.
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Skincare and home fragrance company Trilogy International [NZX:TIL] says it has acquired 25% of Chilean rosehip producer Forestal Casino for $US8 million in cash and shares, giving it certainty of supply for an oil used in skincare products.
Last week Trilogy was asked by the NZX to explain a jump in its stock price,
Trilogy will pay $US2 million in cash and issue 2.6 million new shares to Forestal Casino, valued at $US6 million. The shares are subject to a two-year lock-up agreement.
As part of the acquisition, Forestal Casino will grant Trilogy a long-term supply agreement for rosehip oil, a core ingredient in a number of Trilogy's skincare products. The company says the acquisition will be earnings accretive although it won't generate a dividend in the short-term as surplus cash is invested for growth.
"As we continue to grow, initiatives like this investment, which vertically integrate the supply chain, are an important part of the strategy to reinforce Trilogy as a global leader in natural skincare," chief executive Angela Buglass says.
Trilogy shares last traded at $4.05 and have soared 305% in the past 12 months.
(BusinessDesk)
Jonathan Underhill
Thu, 26 May 2016
Thu, 26 May 2016
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Trilogy buys 25% of Chile rosehip producer
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