Oroton takes stake in online lifestyle brand The Daily Edited
Luxury fashion retailer Oroton has agreed to purchase approximately 30 per cent in the rapidly growing Australian lifestyle accessories brand The Daily Edited for $4.5 million, giving it a valuation of nearly $15 million. .
The Daily Edited owners, Alyce Tran and Tania Liu, will be paid in cash and shares, and Oroton expects the investment to be immediately accretive with double-digit EPS accretion forecast for FY18.
Starting out as a blog in 2011, The Daily Edited operates a direct-to-consumer model primarily through its online platform and concession outlets, with additional growth through its new standalone retail offering.
The lifestyle brand has approximately 40,000 active customers in its online platform, and approximately 185,000 followers across a range of social media platforms.
Oroton will have the opportunity to raise its interest in The Daily Edited to a majority stake in future.
The Oroton board said the investment is strategic, as the retailer looks to grow a portfolio of complementary, affordable luxury brands, that can leverage the back office structure as a platform for growth.
The Daily Edited will also help Oroton capture a younger demographic, complementing its existing sales channels, OrotonGroup chairman John Schmoll said.
“Today we are embarking upon an exciting new partnership with Alyce and Tania. The TDE [The Daily Edited] management team and online presence will provide OrotonGroup with fresh new growth options and access to a fast-growing, younger Australasian customer base, presenting attractive future growth optionality over and above that already embedded in our business today.”
The Daily Edited founders Tran and Liu will continue to operate the business following the transaction, and realise both future growth and productivity opportunities facilitated through the partnership.
“This transaction represents a significant milestone for TDE, signalling its transition from an emerging retail business to an established fashion brand and recognised destination for customised accessories.
“We are excited by the opportunity to partner with OrotonGroup and learn from and leverage its proven retail and back office capabilities and network and together grow both companies to leading positions in the industry,” Tran said.