Kiwi beauty brand Trilogy announces proposed sale to Chinese firm

Trilogy/ Facebook

Beauty company Trilogy International has announced its pending sale to Chinese private equity firm Citic Capital China Partners.

On Friday morning the owner of skincare and fragrance brands Trilogy Natural Products, Ecoya, Goodness Natural Beauty Lab, By Nature and Lanocreme, asked its shareholders to approve the sale, in an announcement made to the New Zealand Stock Exchange (NZX).

It is dual-listed on the NZX and Australian Stock Exchange.

Trilogy shares would be bought by Citic Capital for $2.90 each if the sale was approved – almost a 28 per cent premium on its closing share price on Thursday. The offer would value Trilogy at $210 million.

Trilogy chairman Grant Baker said Citic Capital would be a “good owner” to drive the company’s next phase of growth into Asia and the United States.

“Citic Capital’s strong relationships in the Asian and US markets provide an opportunity to unlock the potential of these brands, and achieve faster growth globally,” Baker said.

Trilogy opened an ecommerce flagship store on Alibaba’s T-Mall platform in July.

Last year it made $4m from sales in eight Asian countries.

Trilogy chief executive Angela Buglass said the sale would bring more career opportunities to its staff.

It has now entered into a Scheme Implementation Agreement, where its sale is pending Overseas Investment Office, High Court and shareholder approval.

It will hold a special meeting with shareholders about the deal in March 2018.

Trilogy’s major shareholder The Business Bakery has backed the sale.

Baker said Trilogy directors “unanimously recommend” the acquisition.

It has been in confidential discussions with Citic Capital for an unknown period of time.

Hong Kong-based Citic Capital Holdings has investments in 130 companies, totaling assets worth about $31.5 billion.

This article was originally published by Stuff.co.nz. Read the original here.

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