Coletica: a strong 2004 paves way for acquisition
in the company, having just announced a strong set of financial
results for 2004, reports Simon Pitman.
The France-based cosmetic ingredients supplier confirmed that Engelhard had paid approximately €50 million for a 77.87 per stake in the company's shares, which are held by French fashion house Lacoste, together with significant stakes owned by two large scale private investor. Some shares are also indirectly owned by the Bioetica company.
Engelhard, a US-based materials specialists, says it plans to make a tender offer for the remaining public shares at a price of €37.10 a share - the same price it paid for the 1,358,730 shares it bought from the private investors.
The move means that Engelhard will have 100 per cent ownership, which will translate as a total purchase price of €65.85 million. The tender offer will be made towards the end of March or the beginning of April.
Confirmation of the acquisition comes in the same week that Coletica has realised a stronger set of financial results, breaking an unsure track record in the last few years.
The company said that it had increased its sales turnover from $19.39 million in 2003, to reach €25.97 million in 2004. Backing this strong performance up, a concerted effort to improve the company's commercial structure during the course of the year has also paid dividends, with group operating profits up from €1.17 million in 2003, to €4.99 million in 2004.
The increased sales and operating profit also helped to boost the bottom line, with net profits increasing from €3.69 million, up from €210,000 in 2003.
Overall the company's balance sheet looks healthy, with equity of €17.06 million, cash of €10.07 million and debts of just €110,000. Industry experts believe that, with a further €50 million in the bank from the Engelhard acquisition the company is well poised for further expansion.
More specifically, Engelhard's position as a leading global player in the market for skin care ingredients for anti-wrinkle products, sun screens and moisturizers will see the company well poised to capitalise on the phenomenal growth this category has experienced in recent years.
Coletica, which is listed on the Eurolist for the Euronext Paris, specialises in active compounds and related technology for the cosmetics and beauty industry. It deals with a host of upmarket cosmetic companies, including names such as Coty, Chanel, Estée Lauder, Henkel, l'Oréal and LVMH.
Traditionally it has provided these companies with R&D facilities and know-how to provide definition and implementation of concepts for the development of new products. Approximately half of its business operations - which cover the Americas, Asia and Europe - are governed by active compounds, with the other half revolving around encapsulation technologies.
