Libra parent Asaleo Care is to acquire feminine hygiene business Tom Organic, extending its portfolio into higher-margin categories.
The deal, worth $12.75 million, is part of Asaleo Care’s strategy to enter the fast-growing ‘better-for- you’ personal care sub-category, which is driven by increasing demand for natural and sustainable products.
“Tom’s much-loved brand, sustainable product range, innovation pipeline, and digital and e-commerce capabilities align strongly with the company’s strategy to operate in higher growth, higher margin personal care categories,” said Sid Takla, CEO and MD at Asaleo Care.
The acquisition is expected to help the company exceed $11 million in first year net revenue. Underlying EBIT is expected to be $1.7 million, increasing to $3.5 – 4 million in the second year, after scale and supply chain benefits have been realised.
Established in 2009, Tom Organic is known for its high growth organic feminine hygiene products, including tampons, pads, liners, period briefs and menstrual cups. Meanwhile, Asaleo Care has a strong presence in feminine care with its Libra brand.
“As a leader in personal care with brands such as Libra, Asaleo Care, like Tom Organic, has a deep understanding of women,” said Aimee Marks, founder and CEO at Tom Organic.
“After 10 years working passionately to build an exceptional brand, we are delighted that Tom’s future will be in the hands of the only Australian manufacturer of feminine care products.”