Adore Beauty shares lower on $25m iKOU acquisition
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More news: Shares in Adore Beauty dipped on the ASX after the online retailer announced it had agreed to buy beauty and wellness brand iKOU Holdings.
Adore Beauty shares were down 3.7% to $0.91 by 11:50am AEST but over the last 12 months it has surged 15.19%.
Adore Beauty to buy iKOU for $25 million
The news: Online retailer Adore Beauty has agreed to buy beauty and wellness brand iKOU Holdings in an all-cash deal.
The numbers: Adore will pay $25 million for iKOU, with the transaction to be funded out of its cash reserves.
iKOU, whose operations include three retail boutiques, a direct-to-consumer website and wholesale distribution arrangements with retail stockists and luxury spas, is forecast to generate $8.1 million in revenue and $2 million in earnings in FY24.
The context: Adore CEO Tamalin Morton said the acquisition complements the company’s 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 would accelerate private label share of revenue and improve margin profile. The deal is expected to be completed by July-end.
In April, Adore announced that Morton would step down from the role in September for personal reasons, having led the company since January 2023.
In November 2023, the company rejected a takeover offer from UK e-commerce group THG.
The source: ASX announcement
