Peterborough beauty products maker in battle to buy rival
A beauty and lifestyle products maker in Peterborough is embroiled in a battle to buy a rival company.
Creightons, which has its manufacturing hub and offices in Lincoln Road, where it employs 340 people, has declared its intention to acquire the international giant, InnovaDerma.
Late last month, in a preliminary approach, Creightons submitted a possible ‘all share’ offer - in which InnovaDerma’s investors would get a payment in shares rather than cash - for the company.
But directors were left frustrated after the move was ‘unequivocally rejected’ by the Innovaderma Board without giving Creightons the opportunity for further talks.
Concerned its rival’s shareholders might not be aware of the offer, Creightons opted to effectively write to InnovaDerma’s investors.
In a letter to InnovaDerma’s directors, which under transparency rules has to be published by the London Stock Exchange (LSE), Bernard Johnson, managing director of Creightons, stated: “I am writing to confirm our serious interest in combining our two businesses to the mutual benefit of both sets of shareholders.
“Given our business’ relative sizes and performances, we believe your shareholders would benefit from becoming part of an enlarged group.”
Mr Johnson urges the board to begin discussions about possibly combining the two businesses.
He said: “Creightons is a stable, profitable and cash generating business, with the latest audited annual turnover of just under £50 million.
“Creightons has a diverse customer base and is on record as committed to growing the business substantially. We own an 11-acre site in Peterborough which we occupy exclusively and which offers opportunity for continued expansion. Innovaderma has a digital capability and owns brands that would complement Creighton’s current offering.”
The Creightons’ proposal involves offering shareholders two of Creightons ordinary shares for every three Innovaderma ordinary shares.
But InnovaDerma directors stated: “The Board unanimously rejected the proposal on the basis that it significantly undervalued Innovaderma and its standalone prospects.”
Under LSE rules, Creightons has until March 2 to announce whether or not it has a firm intention to make an offer for InnovaDerma.