- BWX (BWX) completes acquisition of Flora & Flauna for $27.9 million
- BWX’s e-commerce business, Nourished Life and Flora & Fauna, will form a new business unit providing products touted as healthy and sustainable
- The founder of Flora and Fauna Julie Mathers will step up as Managing Director and be in charge of overseeing the new business unit
- BWX says the acquisition will be EPS accretive in FY22 and strongly EPS accretive by FY24 with the anticipation of further synergies
- At the end of trade, shares were down 2.87 per cent at $5.08
BWX (ASX:BWX) has completed its acquisition of Flora & Flauna for $27.9 million.
The online retail platform, which focuses exclusively on vegan, ethical and sustainable products, will operate alongside BWX’s pureplay e-commerce business, Nourished Life, forming a new business unit.
In addition to finalising the purchase, BWX has also announced the founder of Flora & Fauna, Julie Mathers, will be Managing Director of Flora & Fauna and Nourished Life, effective today.
BWX said the focus of the new synergy was to provide customers with a multi-category portfolio of “better-for-you”, healthy and sustainable products, 80 per cent of which it says are not available in mainstream retail.
In May the company announced the planned acquisition would be priced between $27.9 million and $30.8 million based on forecast revenue for the financial year ending June 30 2021 (FY21), and payable on completion.
Flora & Fauna is on track to deliver total net revenue of $16.4 million in FY21, which is a 35 per cent increase on the previous year’s net revenue.
BWX has paid an instalment of the total consideration with the balance anticipated to be paid in the first quarter of FY22, subject to finalisation of the closing accounts.
The company expects the acquisition to be EPS accretive in FY22, and strongly EPS accretive by FY24 with the anticipation of additional synergies.
Shares ended the day trading 2.87 per cent lower at $5.08.