Latest news:

You are currently not logged in

Log in
E-commerce

Nourished Life acquired by ASX-listed skincare company

BWX, the ASX-listed company behind the Sukin skincare brand, has acquired Nourished Life, an online-only retailer specialising in natural and organic skincare and health and wellbeing products.

Announced on Monday, the deal is for an initial consideration of $20 million, comprising $16 million in cash and $4 million in BWX shares, plus a potential earn out based on Nourished Life’s performance and growth over the next four years.

BWX cited Nourished Life’s rapid growth through social media and digital assets, including its online store, blog and digital magazine, as a key reason for the acquisition.

“The Nourished Life transaction is an excellent opportunity to acquire a highly profitable online platform with proven social media an digital capabilities which can be leveraged across our business and brands in this increasingly important channel,” BWX CEO John Humble said.

BWX owns and operates a portfolio of brands, including Sukin, Mineral Fusion, DermaSukin, Uspa, Edward Beale, and Renew Skincare, which it currently sells through retail outlets, such as Chemist Warehouse.

The deal with Nourished Life gives BWX the ability to sell direct-to-consumer online and expand its brand portfolio.

Nourished Life offers about 3,500 individual SKUs across domestic and international brands and categories, including skincare, body care, hair care, makeup, sun care and eco-friendly homewares and clothing.

The online retailer introduced a private label brand, Life Basics, in February 2017. The Life Basics brand is on track to contribute approximately 20 per cent of Nourished Life’s revenues by June 2018.

Net sales for the online retailer are expected to exceed $25 million and pro-forma EBITDA for FY18 is expected to exceed $4 million, according to a statement from BWX.

Nourished Life founder and owner, Irene Falcone, said the online company will benefit from BWX’s resources and support.

“Words cannot describe the excitement within Nourished Life at the prospect of working with BWX. With the support and resources of BWX’s operational team behind us, we look forward to curating an even wider selection of products for our many thousands of loyal customers to enjoy.

“Having the change to align our future with a company such as BWX, that shares our passion for natural products and environmental sustainability, was important to us, becoming the key driver of the transactions, and whilst we were presented with opportunities at substantially higher valuations, the cultural fit was so strong we couldn’t be more thrilled with the outcome.”

Falcone told Internet Retailing she will remain at the helm of Nourished Life.

BWX funded the initial $16 million cash consideration through the direct placement of new shares in the company at a price of $5.35 per share.

The acquisition is expected to complete in September 2017.

No Comments | Be the first to comment
+-

Comment Manually

No comments