Adore Beauty has entered into a binding agreement to acquire 100 per cent of Australian beauty and wellness brand, iKOU Holdings Pty Ltd (iKOU) for $25 million in an all-cash deal.
Founded in the Blue Mountains, iKOU’s extensive product range comprises of more than 300 SKUs across organic skin care, bath and body, home fragrance, herbal tea and spa lifestyle accessories.
The brand caters to the clean beauty trend with organic, Australian made, and cruelty-free products spanning beauty and wellness categories.
Commenting on the acquisition, Adore Beauty CEO, Tamalin Morton said, "iKOU complements and strengthens our existing business, delivering revenue growth and margin expansion, as well as supporting private label and physical store initiatives."
"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."
Established 17 years ago by founders Naomi and Paul Whitfeld, iKOU is an ideal strategic fit for Adore Beauty and supports the company’s long-term growth and margin targets.
The business is profitable and debt-free and is forecast to generate revenue of $8.1 million and EBITDA of $2.0 million in FY24.
"Renowned for its high-quality products, iKOU has a loyal, repeat customer base," said Morton.
"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."
Subject to satisfaction of certain conditions precedent, Adore Beauty expects to complete its acquisition of iKOU on July 31st, 2024.
Image credit: iKOU
