Quadrant exits Australia underwear brand to Swedish strategic

Quadrant took a majority stake in Modibodi in September 2019 via its AUD 400m first Australasian growth capital fund, which writes cheques in a range of AUD 30m-AUD 50m for minority and control positions.

Historically a buyouts-focused investor targeting companies worth AUD 100-AUD 500m, Quadrant has reached into the smaller end of Australasia’s middle market in recent years, citing attractive opportunities and relatively sparse competition. Its second growth fund closed on AUD 530m in August last year.

Founded in 2013, Modibodi is a designer, developer and provider of reusable personal hygiene apparel for periods, incontinence, perspiration, and pregnancy. It claims patented technology that allow air to flow through products while absorbing period flow, bladder leaks, sweat, and breastmilk.

At the time of the acquisition, Quadrant said the company had a strong market position globally, notably in the UK and France, with close to 200,000 active customers. It operates an online, direct-to-consumer business model with sales said to be growing in retail and third-party e-commerce.

The company reported net sales of AUD 56.7m, sales growth of 18%, and EBITDA of AUD 5.7m in 2021. Gross margin was high and EBITDA margin amounted to 9.8%, according to a statement from Essity, which projected upside for the business in growing feminine care and incontinence product markets.

For Quadrant, Mobibodi represents part of a trio of investments in women-led businesses made in rapid succession in September 2019, including online cosmetics retailer Adore Beauty and baby care brand Love to Dream. Women’s sleepwear brand Papinelle was acquired the following year, also via the inaugural growth fund

Adore became the fund’s first exit following a AUD 269.5m IPO in 2020. It currently has a market capitalisation of AUD 106.4m.

Justin Ryan, who led Quadrant’s growth strategy during these investments, teamed up with Adore founder Kate Morris last year to establish an e-commerce and consumer brands-focused investor called Glow Capital Partners. Their debut fund is targeting AUD 300m.

Recent exits from Quadrant’s growth program IT enterprise services business Arq Group, which was sold to SingTel Group-owned NCS Group in March for AUD 290m. Based on Quadrant’s entry valuation of AUD 35m in 2020, it has generated a return of more than 8x.

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• Topics
• Australasia
• Consumer
• Exits
• Trade sale
• Australia
• Quadrant Private Equity
• e-commerce