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Investment fund buys up Sun & Skin Care Research premises

By Simon Pitman , 09-Jan-2013

Investment fund manager AIC Ventures has bought up the Florida production facility of Sun & Skin Care Research, Florida as part of a sale leaseback transaction.

AIC closed the transaction this week with Sun & Skin Care Research’s portfolio company, Source Capital, and subsequently entered into a long-term lease back of the facility.

Although neither company has revealed the exact terms and conditions of the transaction or the price paid for the lease back, the transaction enables the skin care company to liquefy some of its assets and reinvest the newly available cash.

Looking for further acquisitions

“We were seeking a means to unlock capital through a sale leaseback transaction to allow us to deploy funds in a more productive way and accelerate our growth plans such as making further strategic acquisitions of brands and technologies, continuing to expand into new geographies around the world, and supporting our marketing and business development effort,” said Ben Emmons, managing director at Source Capital.

Sun & Skin Care REseach is a leading manufacturer of sun care products that are sold both in the United States and in international markets.

Its brands include names such as Ocean Potion, No-Ad and Margaritaville Parrot Head, which cover the sunscreen, tanning lotions, after-sun, moisturizer and lip balm categories.

No-Ad acquisition helped boost the portfolio

The company was established in 1989 in Virginia Beach, Virginia and the company made a significant step towards expanding its portfolio in 2008 when it acquired the sun care brand No-Ad, which was established in the 1960s.

By acquiring the No-Ad brand, the company has been able leverage its position in the segment, which has in turn been boosted by a growing consumer awareness of the perils of unprotected sun exposure.

However, added to that mix, the economic climate and general retail slow down, means that value-added products epitomized by this range are an even faster growing niche within this segment.

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