InnovaDerma PLC (LSE:IDP) said it now wholly owns its flagship Skinny Tan brand after acquiring the remaining 4% shareholding from the brand's founder.
The digitally focused UK beauty brand developer said the A$0.96mln cash-and-shares consideration for the acquisition continues its strategy of simplifying and refocusing the business, reducing operational and financial complexity.
InnovaDerma will pay cash of A$0.48mln (£0.26mln) in eight equal tranches over a two-year period and 683,152 ordinary shares in the company, equating to an additional A$0.48mln.
Blake Hughes, chief executive of InnovaDerma, said: "InnovaDerma acquired an initial 80% of the share capital of Skinny Tan from founders Louise [Ferguson] and Kate [Cotton] back in 2015, since then the brand has gone from strength to strength and become one of the best-selling self-tanning brands in the UK.
"Over the years we have built our ownership to 96% and as we enter into a new phase of profitable growth for InnovaDerma, I'm pleased that we have now acquired the remaining shares in our flagship brand, Skinny Tan. This resolves a legacy situation and further simplifies our company."
He said the company will continue to work with Ferguson, who is senior brand manager for the brand, as it launches new products and further expands the Skinny Tan business into existing and new geographies.