Trilogy buys 25% of rosehip producer in Chile for US$6 mln in cash, shares

Thursday 26th May 2016

Trilogy International, the skincare and home fragrance company that was last week asked by the NZX to explain a jump in its stock price, says it has acquired 25 percent of Chilean rosehip producer Forestal Casino for US$8 million in cash and shares, giving it certainty of supply for an oil used in skincare products.

Trilogy will pay US$2 million in cash and issue 2.6 million new shares to Forestal Casino, valued at US$6 million, the Auckland-based company said in a statement. 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 skincare products, it said. The acquisition would be earnings accretive although it won't generate a dividend in the short-term as surplus cash is invested for growth, it said.

"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 said.

Trilogy shares last traded at $4.05 and have soared 305 percent in the past 12 months.

BusinessDesk.co.nz

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