Bain abandons buyout of Australia's BWX

BWX said in a statement that negotiations with Bain had failed to result in a binding proposal, and consequently the company felt it was in the best interests of shareholders to remain independent. The company added that a strategic review undertaken after Bain’s offer identified previously unexplored growth opportunities that could help maximize shareholder value. 

John Humble and Aaron Finlay, who worked with Bain on the offer, have also stepped down from their executive and board roles with the company. Humble served as managing director and CEO, while Finlay was the finance director, though both took a leave of absence during the strategic review.

Bain offered in May to buy all outstanding shares in BWX for A$6.60 per share in cash, with the company announcing its strategic review in June. The GP requested an extension to the review last month to allow it to complete due diligence.

BWX’s portfolio of brands includes Sukin, DermaSukin, Life Basics, Upsa, Edward Beale, and Renew. It also operates the Nourished Life online marketplace.

The company sees domestic and global expansion of all its brands, particularly Sukin, as a key organic growth opportunity, along with leveraging Nourished Life as a digital revenue channel. During the review process, BWX also said it had received proposals from several parties for joint venture, distribution and licensing agreements that could accelerate its growth overseas.

For the year ended June 2018, BWX reported A$149 million in revenue, up from A$73 million the year before. Over the same period net profit grew from A$13 million to A$19 million, while the company’s debt burden, which had grown more than tenfold from 2016 to reach A$62.5 million, dropped to A$50.8 million.

Recent activity by Bain in Australia includes the acquisition of child care services provider Little Learning School as a bolt-on to existing portfolio company Only About Children (OAC), which Bain acquired in 2016. The firm also owns Camp Australia, a provider of after-school care, which it purchased the same year.

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• Topics
• Australasia
• Buyouts
• Consumer
• Australia
• Bain Capital Asia