Online retailer Adore Beauty Group Ltd (ASX:ABY) is set to acquire beauty and wellness brand iKOU Holdings Pty Ltd, entering into a binding agreement which will see the purchase confirmed for $25 million cash.
According to the deal, Adore will pay $20 million at completion of the deal, and the rest 18 months later.
Founded in the Blue Mountains, but retailing globally, iKOU’s business revolves around organic skincare, bath and body, home fragrance, herbal tea and spa lifestyle products, with a focus on organic and cruelty-free items.
The brand – whose name comes from the Japanese verb for ‘rest, relax and restore’ – sells its range from three boutiques in the Blue Mountains, Sydney and Byron Bay, as well as a direct-to-consumer website, and through wholesale distribution agreements with retail stockists and luxury spas.
Adore Beauty CEO Tamalin Morton said she was pleased with the acquisition, as a strong addition to the company portfolio.
“iKOU complements and strengthens our existing business, delivering revenue growth and margin expansion, as well as supporting private label and physical store initiatives,” she said.
“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.”