BWX snaps up online eco startup Flora & Fauna
BWX is branching out beyond natural beauty into vegan and cruelty-free products with its acquisition of leading eco-friendly online retailer Flora & Fauna.
The acquisition, announced Monday, will see BWX pay between $27.9 million and $30.8 million for 100 per cent of the Good Collective Pty Ltd, which trades as Flora & Fauna. This represents a multiple of between 1.6 and 1.8 times the online retailer’s FY21 revenue, which is expected to be between $16.4 million and $17.1 million.
It comes as younger consumers increasingly consider the environmental and ethical impacts of their purchasing decisions. The global vegan cosmetics market is expected to be worth US$20.8 billion by 2025, according to Statista.
“The younger generation are absolutely focused on purpose-driven brands, they’re focused on better products, and BWX recognises that this is a growing market, it’s not slowing down,” Julie Mathers, Flora & Fauna founder and CEO, told our sister site Inside Retail.
Mathers and her entire team of 47 people based in Sydney will join BWX once the acquisition is complete. That is expected to occur in July 2021.
Founded in 2014, Flora & Fauna currently ranges 10,000 SKUs in 10 key categories, including beauty, personal care, lifestyle, baby and kids, pet, food and health, and has a loyal following of 94,000 active customers. While it primarily sells online, it opened a bricks-and-mortar store at its warehouse in Sydney in 2019.