China’s CITIC Capital has entered into a scheme implementation agreement (SIA) to acquire New Zealand’s Trilogy International Limited (TIL), a cultivator of essential natural products and home fragrance brands, for NZ$250 million ($175 million).
Under the SIA, it is proposed that a wholly-owned subsidiary of CITIC Capital will acquire all the outstanding shares in NZX and ASX-listed TIL for NZ$2.90 cash per share, as per a statement dated December 15.
The scheme is conditional on the approval of TIL’s shareholders, the High Court, and the New Zealand Overseas Investment Office (amongst other things), it added.
The TIL directors intend to unanimously recommend to all shareholders that they vote in favour of the scheme. It’s largest shareholder is Business Bakery, which holds 31.2 per cent of the shares.
TIL chairman Grant Baker said, “The Board remains confident that TIL is well positioned to deliver growth in earnings across each of its four businesses in the long term. Delivering this growth will take time and involves execution risks. Therefore, shareholders may find attractive the opportunity to realise the value of their TIL shares in cash now.”
“CITIC Capital is viewed as a good owner of TIL as it moves into its next phase of growth. In particular, 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,” he added.
TIL’s products include Trilogy Natural Products, ECOYA, Goodness Natural Beauty Lab, By Nature, Lanocreme, Tiaki, and Rata & Co, in New Zealand and around the world. Its subsidiary CS Company Limited (CS&Co) distributes international cosmetics, fragrances, skincare and haircare brands in New Zealand.
Angela Buglass, CEO of TIL, said: “CITIC Capital will bring added capability necessary to build our brands on a truly global scale, better serve our customers and consumers, and provide new career opportunities for our people.”
TIL has close to 100 team members, who are focused on manufacturing and delivering quality products to consumers in New Zealand, Australia and over 25 countries around the world, according to its website.
CITIC Capital was advised by First NZ Capital and MinterEllisonRud.