Cherry Tree Consumer Newsletter: April 2023 Transactions and Valuations

Cherry Tree & Associates | Notable M&A Transactions, April 2023

Walmart to Sell Menswear Brand Bonobos to Express and WHP Global

Walmart is selling its menswear brand, Bonobos, to Express and WHP Global for $75 million. This transaction is significantly less than the $310 million Walmart paid to acquire Bonobos in 2017. As part of the deal, WHP Global will acquire Bonobos for $50 million, while Express will acquire the operating assets and assume related liabilities for $25 million. Express reported a decline in their fourth-quarter sales, so the company sees potential in Bonobos to boost its brand and plans to enter into an exclusive license agreement with WHP Global to operate the business.

reuters.com

Blue Point Capital Partners Acquires Minneapolis-Based eyebobs

Blue Point Capital Partners has announced the acquisition of eyebobs, a leading brand in premium reading glasses based out of Minneapolis, for an undisclosed amount. Earlier in the year, Blue Point acquired Europa Eyewear, establishing it as a platform holding company. With Blue Point’s latest acquisition, eyebobs will join the unique eyewear platform designed for B2B and B2C growth. Blue Point sees a tremendous opportunity in the eyewear market and plans to provide both companies with the needed resources to grow.

finance.yahoo.com

Walmart Sells Plus-Size Fashion Brand Eloquii to FullBeauty Brands

FullBeauty Brands has acquired Eloquii from Walmart for an undisclosed amount, expanding their presence in the plus-size fashion market. FullBeauty Brands will retain Eloquii’s co-founder and brand leader Julie Carnevale. The company will aim to anchor Eloquii in its “digital mall” and attract younger generations, specifically Millennial and Gen Z consumers, to buy the product. This move by Walmart aligns with their shifted e-commerce goals of improving the financials of their digital business rather than growing the number of available items.

cnbc.com

World’s Largest Cosmetic Company L’Oréal to Acquire Skin Care Brand Aesop

French Cosmetic Giant, L’Oréal, acquires Luxury Skin Care brand Aesop for $2.5 billion. This marks L’Oréal’s largest ever acquisition. Aesop, based in Australia, is known for its skin, hair and body products that doesn’t use ingredients derived from animals. The Company has nearly 400 stores worldwide, including two in Shanghai within the past year. Outside of the attractiveness of its loyal following, L’Oréal, the largest cosmetics company in the world, hopes to expand its footprint in China. Pending approval from regulators, this transaction is expected to close in the second half of the year.

nytimes.com

Calavo Growers Sells Salsa Lisa Back to Founder

After selling her St. Paul-based salsa brand to Calavo Growers in 2010, original founder Lisa Nicholson has bought back Salsa Lisa for an undisclosed amount. Calavo Growers sold the salsa brand as part of a cost-cutting initiative. Since reclaiming ownership, Nicholson has been focused on exploring untapped areas like social media, and she plans to leverage her national relationships to further grow the brand.

tcbmag.com

Wild Alaskan Acquires US Seafood Processor Home Port

Wild Alaskan Company has acquired Home Port Seafoods for an undisclosed amount. Wild Alaskan, a seafood business who largely sells its products online based on membership, is planning to develop new sales channels beyond its current direct-to-consumer model. With this acquisition, Wild Alaskan has been given access to Home Port’s network of foodservice and retail customers. Wild Alaskan aims to leverage Home Port's production capacity, value-added capabilities, and customer base to provide enhanced offerings and solutions.

just-food.com

Industry Executives Acquire Tequila Brand, Goza Tequila

Paul Hletko and Dave Schmier have acquired a tequila brand, Goza Tequila for an undisclosed amount. Hletko is the founder of Few Spirits and Schmier is the creator of Redemption Rye Whiskey. With this purchase, Hletko and Schmier aim to leverage their expertise and experience to further develop the tequila brand. The Goza brand is well positioned in the tequila market to scale. Following the closing of the transaction, the Goza Tequila team will continue to work with the company in Mexico to assist with sourcing and bottling.

thespiritsbusiness.com

Uneekor Acquires Majority Stake of Premium Golf Putter Brand Evnroll

South Korean golf technology company Uneekor acquires 70% controlling interest in Evnroll for an undisclosed amount. Evnroll, based in Carlsbad, California, is an award-winning, premium golf putter company. The parent company of Uneekor, Creatz, Inc, sees many similarities between the two companies as both businesses work towards improving golf performance-enhancing technology. “We feel that Evnroll, as a 100% US milled and technology driven putter line, is a great fit for Uneekor’s precision analytics in the launch monitor space,” said Eddie Lee, chief sales and marketing officer of Creatz Inc.

golfpost.com

Sky Island Capital Acquires Kaufhold’s Kurds

Sky Island Capital has made a majority investment in Kaufold’s Kurds, an Ellsworth, Wisconsin-based wholesale manufacturer of hand-breaded cheese curds. Kaufold’s Kurds are primarily sold through food service distributors. The Company has contributed significantly to spreading the popularity of cheese curds across the U.S. over the past two decades. Sky Island’s investment aims to support the continued growth of the business and further expand its reach.

perishablenews.com

Edrington Takes Majority Stake in Wyoming Whiskey

Edrington, owner of private spirits brands, has become a majority stakeholder in Wyoming Whiskey. Founded in Kirby, Wyoming by fourth-generation cattle ranchers, Wyoming Whiskey is an American whiskey brand that produces rye whiskey and bourbon. Edrington is very familiar with Wyoming Whiskey as they purchased a 35% stake in the Company back in September 2018. With this transaction, Edrington increases their ownership to 80% and see this as an opportunity to work closer with the business as they increase their investment in the brand.

thespiritsbusiness.com

International Baking Manufacturer Grupo Bimbo Acquired Natural Bakery

Multinational food company, Grupo Bimbo, has announced the acquisition of Natural Bakery. Founded in 1957 by Lithuanian immigrants, Natural Bakery is a one-bakery operation based in Winnipeg. Natural Bakery product is a direct reflect of their roots has they produce rye breads that resemble European recipes. Majority of Natural Bakery’s product is sold across Western Canada. Grupo Bimbo eyed this transaction as an opportunity to strengthen the health and wellness of its portfolio which includes brands like Thomas and Sara Lee.

foodbusinessnews.net

Baseball Equipment Designer Marucci Sports Acquires Baum Bat

Compass Diversified (NYSE: CODI) subsidiary, Marucci Sports, acquired Baum Bat for an undisclosed amount. Baum Bat is known for manufacturing composite wood baseball bats. Founded in 1993, Baum Bats were the first wood composite baseball bats approved for wood bat play at the high school level. Today, Baum Bats are used throughout various professional leagues and NCAA play. Marucci Sports, leading manufacturer and distributor of baseball and fastpitch equipment, plans to retain Baum Bat’s leadership team while strengthening its position as a leading baseball and fastpitch equipment provider.

globenewswire.com

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