Womenswear retailer, Noni B has agreed to acquire 50.1% equity interest in New Zealand clothing and apparel retailer, EziBuy from Alceon Group for a “nominal consideration on a cash-free, debt-free basis”.
The deal also has provision for Noni B to acquire the remaining 49.9% equity interest by the end of 2020 for $11 million in cash.
Noni B said the acquisition will fast track its digital strategy, increasing its online sales to represent 20% of combined group revenue or circa $200 million.
Noni B managing director and CEO, Scott Evans said it is another exciting step for the group, consolidating its position as one of Australia’s leading apparel retailers.
“We have a successful record of acquiring retail businesses and improving their operation performance. It is complementary to our existing portfolio of brands, offering cross-selling opportunities, new category growth and geographical expansion.”
EziBuy generates circa NZ$135 million in revenue, of which over 80% is through its digital platform and for FY19, EBITDA was $400,000.
Management anticipates cost of doing business synergies of approximately $9 million to be fully realised in FY21 with additional leverage of Noni B’s sourcing scale and capabilities.
Noni B’s brands include Noni B, Millers, W Lane, Rivers, Katies, Rockmans and Crossroads. The deal is subject to shareholder approval.