Fashion group Mosaic Brands has purchased the remaining 49.9 per cent of online retailer EziBuy for what will amount to $11 million.
The business, then known as Noni B Limited, picked up a majority stake in EziBuy for $1 in late 2019, and the full acquisition will approximately double its annual online sales to make up almost 30 per cent of total revenue.
“It’s fair to say the brand was a little unloved and its potential underestimated,” said Mosaic Brand’s chief executive Scott Evans.
“We’ve quietly and consistently worked in the background to turn around the business and in just 18 months delivered an EBITDA of $3.7 million for FY21.
“We continue to see this channel accelerate with many customers moving to online & EziBuy is a natural fit for the Group and has a strong growth plan to deliver on.”
According to Evans EziBuy’s sales improved between Q2 and Q4 of last year compared to the previous period, and the business is starting the new financial year in a positive position.
The payment of $11 million has been deferred to no later than June 2022.
EziBuy is one of the largest multi-channel retailers in Australia and New Zealand, generating approximately NZ$135 million of revenue, of which over 80 per cent is through its digital platform. It also has expertise in digital and catalogue retailing, which Mosaic planned to leverage across its broader portfolio.
“It is complementary to our existing portfolio of brands, offering cross-selling opportunities, new category growth and geographical expansion for both businesses,” Evans said in 2019.