Adore Beauty Group Limited , Australia’s leading online beauty retailer, announced the acquisition of the Australian beauty and wellness brand iKOU Holdings for $25 million in an all-cash deal. The transaction includes an upfront payment of $20 million, with the remaining $5 million due 18 months after completion. The acquisition is expected to close on July 31, 2024.
iKOU, founded in the Blue Mountains, is renowned for its premium range of organic and cruelty-free products. The brand’s offerings include over 300 items across skincare, bath and body, home fragrance, herbal tea, and spa accessories. iKOU products are available through three retail boutiques in the Blue Mountains, Sydney, and Byron Bay, as well as a direct-to-consumer website and wholesale distribution agreements with retail stockists and luxury spas.
Adore Beauty CEO Tamalin Morton expressed enthusiasm about the acquisition, stating, “iKOU strengthens our business, delivering revenue growth and margin expansion. The brand’s extensive product range enhances our private label share, improves our margin profile, and provides our first physical store presence in three premium locations.”
Established 17 years ago by Naomi and Paul Whitfeld, iKOU aligns well with Adore Beauty’s mission and growth strategy. The brand is expected to generate $8.1 million in revenue and $2 million in EBITDA for FY24. This acquisition will be immediately beneficial to Adore Beauty’s earnings per share from the first year.
Morton added, “Renowned for its high-quality products, iKOU has a loyal customer base. We see significant opportunities to grow the brand and replicate its success across other Australian states through the Adore Beauty platform.”
Adore Beauty, launched in 2000, is Australia’s first beauty-focused e-commerce website. Adore Beauty offers over 13,000 products from more than 270 brands.
iKOU, established in 2007, focuses on organic, Australian-made, and cruelty-free products that bring the spa experience into everyday life.
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