BWX signs $89m deal with Zoë Foster Blake

BWX Limited announced on Friday that it has agreed to acquire a 50.1% interest in Go-To, one of Australia’s leading omnichannel skincare brands for approximately $89 million.

Founded by Zoë Foster Blake in 2014, Go-To is an Australian skincare provider with a range of simple, trusted and effective skincare products for the masstige market and in FY21 generated $36.8 million of revenue and $11.6 million of EBITDA.

The partnership values Go-To on a 100% EV basis at A177m, representing an FY21 EV / EBITDA acquisition multiple. The transaction is expected to be double-digit EPS accretive on an FY21 pro-forma basis post $3m of potential synergies in the first full financial year of the partnership.

Zoë Foster Blake is an Australian skincare entrepreneur, magazine editor, beauty blogger, columnist and author. Believing there to be a gap in the ‘complicated’ and ‘confusing’ and somewhat out of touch global beauty industry, Go-To was founded in 2014, supported by technical Co-Founders Paul Bates, Stefan Drury and Peter Lehrke.

Go-To entered the Australian wholesale channel in April 2019 via a partnership with high growth omnichannel retailer Mecca. Go-To has quickly become one of Mecca’s top-selling skincare brands with products with consistently feature in Mecca’s bestsellers. Sales via Mecca represented 30% of FY21 sales.

A key strength of Go-To is its loyal customer following, with over 1 million followers of the brand via social media and >62,000 in their newly launched loyalty program. Organic channels collectively account for over 70.5% of Go-To’s total Australian website sessions.

Ms Blake will remain a strategic shareholder, Chief Creative Officer and a Board Director of Go-To; other Go-To Co-Founders will also remain in the partnership

Completion of the deal is expected to be satisfied at or around Q1 FY22.