APN News & Media have finally found an exit for brandsExclusive, selling to the fast-growing AussieCommerce group for $2 million in cash.
APN News & Media has announced the sale of its 2012 acquisition, brandsExclusive, which it has been seeking an exit on since sometime last year.
The e-commerce firm, AussieCommerce has agreed to pay $2 million cash and eight percent of its stock for brandsExclusive in a sale that is set to be concluded today. The deal will see brandsExclusive added to AussieCommerce’s growing list of online retail sites, including deals.com.au, The Home, Cudo and the recently launched, The Gourmet.
The Sydney-based APN acquired 82 percent of brandsExclusive in 2012 for $36 million with additional investments pending earnings targets. Since then, brandsExclusive appears to be loss-making. While sales have risen since the acquisition, the business still recorded a loss of $2.6 million before tax in the first half of 2013.
APN CEO Michael Miller believes AussieCommerce “provides the necessary scale for brandsExclusive to prosper in the increasingly competitive online retail environment”.
“This deal is in the best interests of both brandsExclusive and APN shareholders,” Miller said in a company statement.
Adam Schwab, Managing Director of the AussieCommerce group believes that there is a lot of inherent value in the brandsExclusive business, and partnered with his company’s dedication to online retail, there’s no reason why it shouldn’t have a bright future ahead.
“brandsExclusive has been a leader in Australian e-commerce for five years and has a brilliant team and fantastic supplier relationships – it really is a leader when it comes to dealing with massive brands and for us, that was a key factor in the acquisition,” Schwab says. “the brandsExclusive website is – and remains – a fantastic destination for Australian consumers and I look forward to having it join the AussieCommerce group.”
AussieCommerce has been expanding quickly in the past two years, launching an aggressive growth strategy that includes starting new, niche ventures while also making strategic acquisitions to bolster infrastructure, buying strength and services.
E-Commerce entrepreneur and Founder of brandsExclusive, Daniel Jarosch says he is stepping away from the company following the acquisition, allowing him to spend more time with his family.
“This is the end of a chapter for myself as I’m now stepping away from brandsExclusive,” Jarosch says. “However, this new transaction represents an amazing opportunity for brandsExclusive itself, with AussieCommerce fast becoming one of the strongest players in the Australian e-commerce market. In that regard, I’m truly happy that brandsExclusive has a new home and I’m excited to see how it continues to develop in time.”