Luxury cosmetics company Elite Therapeutics talks acquisition with ViaSpace

By Deanna Utroske contact

- Last updated on GMT

Luxury cosmetics company Elite Therapeutics talks acquisition with ViaSpace

Related tags: Privately held company, Public company

The bioenergy company has signed a letter of intent to acquire Elite Therapeutics, and if the deal looks beneficial to both companies it will likely close in Q1 of 2015.

The two companies, quite unrelated in market focus, share a couple of business connections in Elite Therapeutics founder and majority shareholder Dr. Kevin Schewe, who is also chairman of ViaSpace, and in Elite ceo and ViaSpace shareholder Christopher Turner.

Synergies
ViaSpace grows grass that’s sold as electricity-generating fuel, animal feed that yields bio-methane, and for use in biochemicals and biomaterials. Elite Therapeutics, launched in 2007 as the Bad Love Cosmetics Company, develops and sells skin care, hair care and anti-aging personal care products.

“We use plastic containers for nearly all our products and I could see having a plastic container manufacturing site powered by Giant King Grass generated electricity and creating plastic containers derived from GKG plant-based plastics,”​ Turner remarked in a press release announcing the prospective acquisition.

Business motives
The prospect of financial gain, global expansion, and leadership transition are motivating the companies to seriously explore acquisition.

A simple two-businesses-are-better-than-one strategy is behind the talks: “When I started Elite Therapeutics, my goal was to create and grow a physician-driven, luxury-niche cosmetics company with a value in the $100-$400 million range in 10-12 years….I see synergy and security in a combined company dedicated to grow stronger, faster and to create revenues, cash flow and shareholder value,”​ said Schewe. 

Global cosmetics industry
Today Elite Therapeutics is a small privately-held company operating out of the Denver, Colorado, area. The company has retail partnerships with aestheticians, spas, and medical facilities in 12 states as well as with online retail sites Birchbox and Get Pampered.

If acquired by ViaSpace, it will be publically traded and have the benefit of ViaSpace’s international infrastructure.  As Schewe sees it, “Our combined product lines of bioenergy and cosmetics are both global in reach."

Who’s in charge
The leadership is planning ahead; Schewe wants something to do when he formally retires from work in oncology and the 69 year old Kukkonen will of course retire one day too.

“There are no imminent plans for a leadership change. Dr. Kukkonen will continue to serve as CEO and I will continue to serve as Chairman of the Board for now, but we agree on the principles and timing of a succession plan,"​ Schewe explained the press release.

Related topics: Business & Financial

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