The BWX Ltd (ASX: BWX) share price won't be going anywhere today after the company behind the popular Sukin skincare range requested that its shares be placed in a trading halt.
Why are its shares in a trading halt?
According to its release, BWX has requested the trading halt in relation to a potential transaction.
No further details have been announced at this stage, but the company's shares are expected to return to trade by tomorrow's market open following the release of a related announcement.
However, according to the AFR, BWX is expected to attempt to raise $100 million in order to purchase a US-based naturals business. The deal is believed to be highly accretive to earnings.
This will be the third acquisition the company has made this year and comes hot on the heels of the $20 million acquisition of online retailer and influencer Nourished Life last month.
The other acquisition was the US-based Mineral Fusion business in July. BWX paid US$38.4 million plus a potential earn out of US$4.6 million to acquire the number one natural cosmetics brand in the United States.
Should you invest?
While I continue to believe that BWX is one of the best growth shares on the Australian share market right now, I would suggest investors wait to see the full details of the deal before deciding whether to make an investment when its shares return to trade.
Until then investors might want to consider growth shares such as Blackmores Limited (ASX: BKL) and Altium Limited (ASX: ALU).
