BWX (ASX:BWX) to acquire online retailer Flora and Fauna

• Beauty wellness company, BWX (BWX) is set to acquire online retail platform Flora and Fauna
• Flora and Fauna is an online retailer of vegan, ethical and sustainable products with over 300 brands available across categories such as beauty, lifestyle, children and pets
• The deal will see the platform operating alongside BWX’s pureplay eCommerce business, Nourished Life, forming a new business unit within the BWX Group
• The buy is expected to cost between $27.9 million and $30.8 million, payable on closing based on multiples of financial year (FY) 2021 revenue performance of Flora and Fauna, representing a multiple of between 1.6 and 1.8 times the actual FY21 revenue
• The acquisition will be fully funded through a debt facility provided by BWX’s lender and completion is anticipated in July this year
• Shares are trading 4.79 per cent higher at $4.81

Beauty wellness company, BWX (BWX) is set to acquire online retail platform Flora and Fauna.

Flora and Fauna was founded in 2014 and exclusively focuses on the sale of vegan, ethical and sustainable products with over 300 brands available across multiple categories including beauty, lifestyle, children, pets and health.

The online retailer is expected to operate alongside BWX’s pureplay eCommerce business, Nourished Life, forming a new business unit within the BWX Group.

BWX’s CEO and Managing Director, Dave Fenlon said the deal is in line with the company’s omni-channel retail strategy and expands BWX’s direct-to-consumer online offering.

“With complementary categories and minimal consumer and SKU overlap, the two brands will benefit from a strategic approach to customer experience and promotions, as well as operational efficiencies,” he said.

Through the acquisition, founder and CEO of Flora and Fauna, Julie Mathers and her entire team will join BWX.

The buy is expected to cost between $27.9 million and $30.8 million, payable on closing based on multiples of financial year (FY) 2021 revenue performance of Flora and Fauna, representing a multiple of between 1.6 and 1.8 times the actual FY21 revenue.

While the agreement is unconditional, BWX has a limited right to cancel the acquisition if there is a material change due to revenue or profitability dropping below a pre-agreed amount before closing.

BWX believes the acquisition will be earnings per share accretive in FY22 and strongly EPS accretive by FY24.

The acquisition will be fully funded through a debt facility provided by BWX’s lender and completion is anticipated in July this year.

Shares are trading 4.79 per cent higher at $4.81 at 3:51 pm AEST.