Australian skincare company Vitality Brands is to acquire Kiwi beauty brand Essano, which is projected to result in a $130 million annual turnover.

The acquisition is expected to position Vitality Brands as a major independent natural beauty and wellness market player in Australasia and New Zealand. Essano will join Vitality Brands’ current portfolio of brands, including Epzen, Cancer Council sunscreen, and Tribe.

The acquisition is expected to be completed by the end of this month.

“The combination of Vitality Brands and Essano presents an exciting opportunity to further advance our international standing in the beauty sector,” Vitality Brands co-founder and MD Richard Meyrick said.

“Essano has a strong presence and loyal customer following in the New Zealand market and the Essano brand will be an essential ingredient in our plans to expand the entire portfolio of brands across the globe as we leverage Essano’s innovation and R&D capabilities to benefit the wider Vitality Brands portfolio.”

Pencarrow Private Equity will divest its stake in Essano, returning Essano to full private ownership.

“Vitality Brands has a long track record of building and growing brands and the ability for Essano to access the resources and support of Vitality Brands, as well as share ideas and knowledge, will accelerate Essano’s international growth and contribute to unlocking its full potential,” said Anthony Gadsdon, co-founder of Essano.

Meyrick said Vitality Brands also plans to build a workforce in New Zealand, where Essano will continue to operate a manufacturing site.