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BWX expands with online vegan platform

On Monday, BWX announced an agreement to acquire 100% of Flora & Fauna – a Certified B Corporation online retailer focused on vegan, ethical and sustainable products.

Founded in 2014 and based in Sydney, Flora & Fauna boasts 94,000 active consumers as a leading online vegan retailer, with 300 brands available across its multi-category offering that covers beauty, personal care, lifestyle, baby & kids, pet, food & health.

Flora & Fauna will operate alongside BWX’s pureplay e-commerce business, Nourished Life, forming a new business unit within the BWX Group. Founder and CEO of Flora & Fauna, Julie Mathers, and her entire team will join the BWX business.

Flora & Fauna currently have a range of 10,000 SKUs across 10 key categories from 300 domestic and international brands. With 94,000 active customer accounts, the platform enjoys a loyal following and over 300,000 unique monthly visitors. Flora & Fauna offsets all carbon emissions and in 2017 became one of the first Australian retailers to achieve Certified B Corporation status.

Flora & Fauna has a track record of strong sales growth, with FY20 revenue of $12m, up from $10m in FY19. Revenues for FY21 are forecast to be in the range of between $16.4m to $17.1m for FY21.

CEO Dave Fenlon said the acquisition is in line with BWX’s omnichannel retail strategy and expands BWX’s direct-to-consumer online offering. “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. 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. We know that consumers are placing increasing value on sustainable lifestyle choices, as well as direct-to-consumer convenience.”

Transaction details

BWX has agreed to acquire Flora & Fauna for a consideration expected to be between $27.9m to $30.8m payable based on multiples of FY21 revenue performance of Flora & Fauna, representing a multiple of between 1.6x and 1.8x actual FY21 revenue.

The acquisition is unconditional, but BWX has a limited right to terminate should there be a material adverse change triggered if revenue or profitability drop below a pre-agreed floor before closing.

Acquisition to be EPS accretive in FY22, and strongly EPS accretive by FY24 with the realisation of anticipated synergies.

The acquisition will be fully funded through a debt facility and is anticipated to complete in July 2021.

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