BWX Limited has agreed to acquire Australian natural beauty online retailer Nourished Life for an initial consideration of $20 million.
The deal for BWX to buy acquire Nourished Life was announced this week. The $20 million purchase price will comprise of a $16 million cash consideration and $4 million in the form of BWX shares. It is anticipated that the acquisition will complete in September 2017.
Nourished Life says the arrangement with BWX aligns with the company’s objectives, especially when it comes to environmental sustainability, which the company is renowned for, as well as having the support and resources that BWX will bring to the table.
“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,” says Irene Falcone, founder and owner of Nourished Life, who will continue to run the Nourished Life business once it is acquired by BWX, having committed to a minimum period of four years.
“Having the chance 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 transaction, 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”.
ASX listed BWX Limited is a vertically integrated body, hair and skin care company with its head office located in Dandenong South, Victoria in the South Eastern Suburbs of Melbourne. BWX’s operations comprise three core activities, being, brands, new product development and manufacturing. The company owns, produces, and distributes under the Sukin, Mineral Fusion, DermaSukin, Uspa, Edward Beale, and Renew Skincare brands.
Nourished Life is recognised as a trusted online retail platform, exclusively focused on natural and organic skincare and health and wellbeing products. Through the extensive and strategic use of its social media and digital assets across Facebook, Instagram, Nourished Life blog, Nourished Life digital magazine, online store and website, in conjunction with traditional print and electronic media, Nourished Life has quickly grown to become one of Australia’s leading natural and organic online retail brands with a large and engaged community of followers.
BWX says that acquiring Nourished Life was an excellent opportunity to obtain a highly profitable online platform with proven social media and digital capabilities, which can be leveraged across its business and brands in this increasingly important channel. “The acquisition adds a further direct/online channel to BWX’s existing distribution capability, provides an online community of engaged consumers already embracing natural products and allows the Company to access the upstream margin generated by retail sales of Life Basics,” says BWX chief executive officer, John Humble.
“The experienced management at Nourished Life have built a tremendous business catering to the growing appetite of Australian consumers searching out products that complement their lifestyle. We are obviously excited to be working with a team of the calibre of Nourished Life and expect our resources, operational experience and consumer insight will add considerably to the continued growth of the business.”
The Nourished Life product range currently consists of approximately 3,500 individual SKU’s across many local domestic and international brands. The online nature of the Nourished Life business allows Nourished Life to stock many more and diverse SKU’s than a traditional bricks and mortar retailer.
Nourished Life also retail a select range of products under its proprietary brand “Life Basics”. The Life Basics brand has been developed to provide Nourished Life’s customers with a value driven product range that meets each of the platform’s strict product criteria across a number of product categories. Introduced in February 2017, the Life Basics brand is gaining widespread customer acceptance and is on track to contribute approximately 20% of Nourished Life’s revenues by June 2018.