BWX is acquiring the Australian vegan and eco-friendly online retailer, Flora & Fauna, the business has announced.
The company will acquire 100 percent of The Good Company (Flora & Fauna), with consideration expected to be $27.9 to $30.8 million.
Flora & Fauna will operate alongside BWX-owned e-commerce platform, Nourished Life, forming a new business unit within the BWX Group. The entire 47-person team at Flora & Fauna, including Julie Mathers – CEO and Founder – will join BWX in the move.
“We are thrilled to welcome the Flora & Fauna team to the BWX family, and alongside Nourished Life, create a best-in-class ethical online retail platform. Julie Mathers has built an incredible brand offering with her team and we are excited to work together in growing and leading the Natural wellness industry,” said Dave Fenlon, the CEO and Managing Director of BWX.
Fenlon explained that this acquisition is in line with the BWX omnichannel strategy, further expanding the D2C online offering. Moreover, the retailer has ‘complimentary’ categories and minimal consumer and SKU overlap. Fenlon also suggested that the two brands will benefit from the strategic approach to customer experience, promotions and operational efficiencies.
“We know that consumers are placing increasing value on sustainable lifestyle choices, as well as direct-to-consumer convenience. With these two fast-growing online platforms, BWX intends to remain at the forefront of the global wellness revolution and is focused on continuing to evaluate opportunities to further enhance and grow its direct-to-consumer offering,” he said.
Flora & Fauna was founded in 2014 and currently has 94,000 active customers. Net sales for the retailer in FY19 were $10 million, and projects ‘strong’ sales growth. In FY20 net sales were $12 million, and are forecast to reach between $16.4 to $17.1 million in FY21.
“This is a really exciting step for Flora & Fauna and the wider industry. BWX offers Flora & Fauna the opportunity to grow even further as a business with strong alignment about having a positive impact on the planet, people and animals,” said Julie Mathers, the CEO and Founder of Flora & Fauna. “I am a firm believer in giving customers the best experience while operating purposeful businesses that are built on nimble, innovative retailing and world-class customer metrics, and I look forward to continuing, and building on, this approach as part of the BWX team.”
The acquisition is set to be finalised in July 2021 and will be fully funded through a debt facility provided by the Company’s lender.
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