Internal Ref: WL828
Summary
Global leather products and accessories label - Ideal Bolt-on acquisition
Revenue
$1,585,084 pw
Net Profit
$242,612 pw
Location Details
The business has a small warehouse based in Byron Bay, but is full relocatable, with minimal impact.
Potential
Stitch & Hide is looking for outright acquisition to take the company forward post retirement of the Founder.
Because of the way Stitch & Hide is configured, a purchaser would have full flexibility to
materially enhance the value of the business through any/all of the following:
• Develop as a separate brand
• Subsume manufacturing and operations within existing brand
• Grow brand beyond current markets
• Insource Manufacturing
• Introduce as an additional offering to a complimentary brand
Hours
Flexible
Lease
N/A
Employees
As detailed within the IM
Reason for Sale
Owner seeking a well deserved retirement
About the Business
BREAKING NEWS: Sales and profit for FY'24 are hugely up, representing enormous growth over the past year, and heavily increased profits!!
This business has been established for 10-years, and the owner is finally seeking a well deserved retirement. The business is a global leather accessories label, fusing classic and simple design. Stylish eco-friendly designs are for the down-to-earth, eco-conscious consumer with a minimalist style.
Their collections are made up of four leather ranges and one canvas collection, and are responsibly made with Eco-certified leather by LWG Gold-rated partners in India, shipped to their Australian warehouse, then worldwide.
The business has been purposely shifting sales from indirect (wholesale) to direct (D2C) which now make up approximately 60% of overall sales, and has a positive social media presence with newsletters, blogs and travel diaries.
Customers are diverse in gender and age meaning there’s not a clear standout target customer – the #1 revenue audience is 25-34 year old females. The business T/O is broadly stable showing a consistent consumer demand with a loyal customer base of repeat customers.
The gross margin is at 49.7% for the last 12 months until June 30th 2023, and the adjusted EBIT shows that there can be a 48% reduction of overhead costs to be absorbed within an existing infrastructure as a bolt-on-acquisition.
Because of the business configuration, a purchaser would have full flexibility to materially enhance the value of the business through any/all of the following:
– developing a new brand
– subsuming manufacturing and operations costs within existing brand
– in-sourcing manufacturing
– expanding into new markets, as a new offering to a complimentary brand
Owner says: “The business was founded in 2013 with the belief that leather accessories can be both eco-friendly while sharing the classic and laid back vibes of Byron Bay to the rest of the world. We wanted to build a brand that made everyone feel and look good, and we’ve been accessorising to many big adventures around the world over the past 10 years”
A great opportunity to bolster sales in your existing product distribution business, whilst bolting on this well preserved and well received brand and associated products.
Contact Warren Levy for more information: 0414 474 777 / warren@corebb.com.au
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