Hotel Chocolat agrees to buy struggling beauty business for… £4
Hotel Chocolat has agreed to fully acquire Rabot, a beauty business that was born through a joint venture with the chocolatier, for £4.
Rabot was established in 2016 as a joint venture between Hotel Chocolat and Andrew Gerrie, the chocolate retailer’s non-executive chairman.
The business was created to develop a range of beauty products inspired by the chocolatier’s Saint Lucian cacao farm and rainforest spa.
Together, Hotel Chocolat and Gerrie own 47 per cent of the business, however it will now acquire the remaining 53 per cent of the business for £4 in cash.
The £4 price tag is cheaper than the cheapest box of chocolates available to buy on Hotel Chocolat’s website, which will set customers back £5.
The beauty business has struggled, reporting a net loss after tax of £400,000 in the financial year ending 30 June 2020.
On completion of the acquisition, Rabot is expected to have total assets of £700,000 and liabilities of £900.000.
The group will acquire Rabot’s inventories and other assets, as well as its liabilities, including a £744,249 loan to Gerrie, which it will settle by issuing 203,903 new shares at 0.1 pence each.
Hotel Chocolat said it is well positioned to leverage the value of Rabot and further develop the brand.