Maggie Beer Holdings will drop $40 million buying up The Hamper Emporium and Gifts Australia businesses, with a capital raising set to cover the costs of the acquisition.
The businesses, which are expected to earn approximately $36.4 million in revenue during FY21, trade under the unified title of Hampers & Gifts Australia, and fit well within MBH’s future strategy to build its digital offering and relocate its hamper distribution to an east coast location.
“This exciting opportunity will allow us to do this while partnering with a fantastic e-commerce hamper and gifting business, which has an amazing team and is very profitable and cash generating,” said MBH chief executive Chantale Millard.
“It will help us transform the MBH Group and move it to its next level of growth.”
The Hamper Emporium typically serves the corporate sector, though is also customer facing, and sells its own-brand and high-margin third-party hampers. Gifts Australia, on the other hand, sells primarily direct to consumers and offers gift options across affordable price ranges.
Of the overall acquisition cost $20 million will be paid in cash, while the remaining $20 million will be issued as shares in the combined MBH. The business is also undertaking a capital raising to fund $30 million to pay off part of the cash cost, while covering the various costs involved in acquisitions.
The capital raising will be made up of a $10.9 million placement, as well as a pro-rata, accelerated, non-renounceable entitlement offer comprising an institutional and a retail entitlement offer to fund the further $19.1 million.
All MBH directors who are shareholders are expected to participate in the entitlement offer.
Emily McWaters, founder and creative director of Hampers & Gifts Australia said she will continue in her role at the business, and excited to work with MBH moving forward.
“Maggie Beer is a premium iconic Australian gourmet brand that will only further enhance our offering of affordable luxury,” McWaters said.
“I grew up in South Australia and live on Kangaroo Island, and so a partnership with an iconic South Australian brand such as Maggie Beer could not be more perfect.”