Pureplay online beauty retailer Adore Beauty is taking over iKOU for $25 million in an all-cash deal.
Aussie brand iKOU was founded 17 years ago in the Blue Mountains by Naomi and Paul Whitfeld. The brand features both retail and wholesale operations across beauty and wellness categories including organic skincare, bath and body, home fragrance, herbal tea and spa lifestyle accessories.
iKOU is an ideal strategic fit for Adore Beauty and supports the company’s long-term growth and margin targets, explains Adore Beauty CEO, Tamalin Morton.
“iKOU complements and strengthens our existing business, delivering revenue growth and margin expansion as well as supporting private label and physical store initiatives,” she says.
Indeed, the business is profitable and debt-free and is forecast to generate revenue of $8.1 million and EBITDA of $2 million in FY24. The acquisition will be earnings per share (EPS) accretive from year one.
iKOU’s range is available through its three retail boutiques in the Blue Mountains, Sydney and Byron Bay, a direct-to-consumer website and via wholesale distribution agreements with retail stockists and luxury spas.
“The brand’s extensive product range accelerates private label share of revenue, improves our margin profile and provides our first store footprint across three premium locations,” Morton adds.
“Renowned for its high-quality products, iKOU has a loyal, repeat customer base. The business has strong foundations and we see additional opportunities to grow the brand, replicating its NSW success in other Australian states through the Adore Beauty platform.”
The acquisition is expected to be completed by 31 July 2024.
