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MELBOURNE, Australia - AussieJournal -- CDI ANZ, a division of CDI Global, an International M&A advisory and Corporate Finance firm, is pleased to announce another successful transaction, on behalf of Pental Limited.
CDI was engaged by a listed Australian company, Pental Limited, to diversify its sales channel. As a manufacturer and marketer of many leading household chemical and cleaning product brands in Australia, their sales were highly reliant on major supermarket chains.
Increasing pressures on margins saw a long-term challenge on sustainability for the business, and so a strategic initiative was implemented to acquire an eCommerce platform to help support sales outside of the traditional brick-and-mortar avenue. CDI ANZ was engaged by Pental Limited to identify, engage and support a buy-side process for businesses within the online hamper space.
The industry is rather concentrated across a few key players, and size was of great importance to Pental Limited, meaning the scope of targets that would be of strategic fit were minimized. CDI opened a dialogue with one of Australia's premier hamper businesses, Hampers with Bite, which has sales across both B2B and B2C avenues with revenue of $24 million in FY21 with EBITDA of approximately $5.1 million.
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"Hampers with Bite presented as an ideal target for Pental given its size, product range and sales channel opportunity," said Toon Van Beeck, Partner, CDI Global Australia.
"The foundation of the eCommerce platform that they have acquired will allow Pental to aggressively open up a new sales avenue for the business, in what is such an important retail path in this day and age. Pental's manufacturing capabilities will complement synergies for the business and then strengthen the product line in due course," said Van Beeck.
The primary objective for Pental Limited was to see their products introduced through this business and where soft synergies could be attained and diversification of sales channels achieved. With CDI's guidance, it became clear that Hampers with Bite was the perfect solution for Pental Limited.
The deal was announced on the ASX in mid-August, where a successful capital raise saw the transaction complete on 1st September. The total deal size was $28.26m.
About Hampers with Bite
Hampers with Bite (HWB) was found in 2004 by brothers Rory and Nick Boyle in Melbourne Australia and became a leading e-commerce hamper company. Rory Boyle has been a finalist for the last two years in the Melbourne Young Entrepreneur Awards and one of Australia's Top 100 Young Entrepreneurs.
More on Aussie Journal
About Pental Limited
Pental is a tried and trusted Australian provider of household chemical and cleaning products. With an iconic portfolio of brands, Pental has been servicing Australians for generations with honest products that really work. Pental also has a Contract Manufacturing division, which manufactures to company specifications for private label or store brands.
About CDI Global
CDI Global is an international M&A Advisory and Corporate Finance firm, offering middle-market companies and large, corporate acquirers, strategic advice in mergers and acquisitions (M&A), divestitures, joint ventures, buy-side, and sell-side transactions. Additional advisory services include privatization, restructuring, target analysis, valuation, and deal structuring services. Founded in 1973 and having completed over 2000 transactions worldwide, CDI Global maintains 40+ offices in the major financial centers of 30+ countries globally. For more information, visit https://www.cdiglobal.com .
Local knowledge, global reach.
CDI was engaged by a listed Australian company, Pental Limited, to diversify its sales channel. As a manufacturer and marketer of many leading household chemical and cleaning product brands in Australia, their sales were highly reliant on major supermarket chains.
Increasing pressures on margins saw a long-term challenge on sustainability for the business, and so a strategic initiative was implemented to acquire an eCommerce platform to help support sales outside of the traditional brick-and-mortar avenue. CDI ANZ was engaged by Pental Limited to identify, engage and support a buy-side process for businesses within the online hamper space.
The industry is rather concentrated across a few key players, and size was of great importance to Pental Limited, meaning the scope of targets that would be of strategic fit were minimized. CDI opened a dialogue with one of Australia's premier hamper businesses, Hampers with Bite, which has sales across both B2B and B2C avenues with revenue of $24 million in FY21 with EBITDA of approximately $5.1 million.
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"Hampers with Bite presented as an ideal target for Pental given its size, product range and sales channel opportunity," said Toon Van Beeck, Partner, CDI Global Australia.
"The foundation of the eCommerce platform that they have acquired will allow Pental to aggressively open up a new sales avenue for the business, in what is such an important retail path in this day and age. Pental's manufacturing capabilities will complement synergies for the business and then strengthen the product line in due course," said Van Beeck.
The primary objective for Pental Limited was to see their products introduced through this business and where soft synergies could be attained and diversification of sales channels achieved. With CDI's guidance, it became clear that Hampers with Bite was the perfect solution for Pental Limited.
The deal was announced on the ASX in mid-August, where a successful capital raise saw the transaction complete on 1st September. The total deal size was $28.26m.
About Hampers with Bite
Hampers with Bite (HWB) was found in 2004 by brothers Rory and Nick Boyle in Melbourne Australia and became a leading e-commerce hamper company. Rory Boyle has been a finalist for the last two years in the Melbourne Young Entrepreneur Awards and one of Australia's Top 100 Young Entrepreneurs.
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About Pental Limited
Pental is a tried and trusted Australian provider of household chemical and cleaning products. With an iconic portfolio of brands, Pental has been servicing Australians for generations with honest products that really work. Pental also has a Contract Manufacturing division, which manufactures to company specifications for private label or store brands.
About CDI Global
CDI Global is an international M&A Advisory and Corporate Finance firm, offering middle-market companies and large, corporate acquirers, strategic advice in mergers and acquisitions (M&A), divestitures, joint ventures, buy-side, and sell-side transactions. Additional advisory services include privatization, restructuring, target analysis, valuation, and deal structuring services. Founded in 1973 and having completed over 2000 transactions worldwide, CDI Global maintains 40+ offices in the major financial centers of 30+ countries globally. For more information, visit https://www.cdiglobal.com .
Local knowledge, global reach.
Source: CDI Global
Filed Under: Business
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