Adore Beauty's Acquisition of iKOU

Adore Beauty Group Limited (ASX: $ABY) has announced its binding agreement to acquire 100% of Australian beauty and wellness brand, iKOU Holdings Pty Ltd (iKOU), for $25 million in an all-cash deal. The acquisition, funded by Adore Beauty's strong balance sheet of $32.3 million, is expected to strengthen the company's product range and expand its private label share of revenue.

Executive Commentary on Acquisition

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. 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.

Summary of Adore Beauty's Acquisition

Adore Beauty Group Limited (ASX: $ABY) has entered into a binding agreement to acquire 100% of Australian beauty and wellness brand, iKOU Holdings Pty Ltd (iKOU), for $25 million. The acquisition is expected to be funded by Adore Beauty's strong balance sheet of $32.3 million and is forecast to strengthen the company's product range, expand its private label share of revenue, and provide its first store footprint across three premium locations. The acquisition is anticipated to be earnings per share (EPS) accretive from year one. Subject to satisfaction of certain conditions precedent, Adore Beauty expects to complete its acquisition of iKOU on 31 July 2024.