Bain makes $613m bid for Australian skincare business
Bain Capital Private Equity has made a A$810 million ($613 million) buyout offer for BWX, an Australian manufacturer of branded skin and hair care products.
The GP, which is working with BWX’s CEO and finance director, is willing to buy all outstanding shares for A$6.60 apiece in cash, according to a filing. Alternatively, investors can receive 25% of the proceeds in cash and the rest in shares in the acquisition vehicle. The offer price represents a 50% premium to BWX’s May 18 closing price. The stock ended May 22 up 36% at A$5.97.
The company’s portfolio of brands includes Sukin, DermaSukin, Life Basics, Upsa, Edward Beale, and Renew. It also operates the Nourished Life online marketplace. In recent years, BWX has focused on international expansion, acquiring Mineral Fusion and Anadalou Naturals to improve its foothold in the US. Efforts have also been made to secure partnerships with exporters and e-commerce platforms with a view to penetrating the China market.
BWX said in its first-half results presentation that long-term expansion strategies have been implemented for the UK, China, Canada, and New Zealand. In addition, the company is eyeing new markets such as India, where Sukin branded products were recently registered.
Revenue came to A$72.7 million for the 12 months ended June 2017, up from A$54.3 million the previous year. Over the same period, net profit rose from A$12 million to A$13.4 million. BWX’s debt burden also increased more than tenfold to reach A$62.5 million.
Bain’s most recent acquisition in Australia was the purchase of Camp Australia, a nationwide provider of outside school hours care, in late 2016. It has since sought ways to initiate industry consolidation.
In terms of cross-border cosmetics strategies in Asia, Bain can point to Carver Korea, which was acquired by Unilever for $2.7 billion last September. The GP bought a controlling stake in the business with Goldman Sachs for about $380 million with a view to driving China expansion.
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