Australian-Fijian health and wellness company Fiji Kava plans to take full ownership of US ready-to-drink kava brand Leilo in a share swap transaction and placement of US$1.6 million with institutional investors.
Update: Leilo advised in May 2023 that this deal was not closed.
The acquisition would give Fiji Kava access to Leilo’s more than 700 retail distribution points in North America and a growing market share on Amazon.
Dr Anthony Noble, CEO and MD of Fiji Kava, said joining forces with Leilo would accelerate the company’s entry into the fast-growing functional beverage category.
He said the deal would help build the scale required and reach its target profitability sooner.
“The Leilo team is vibrant, young and dynamic,” said Noble. “They have built an amazing brand with a loyal customer base. I am particularly proud to have Leilo Founder, Sol Broady, leading the strategy for this fast-growing brand.”
He added that aside from the cost of goods savings through integrating Leilo’s products into the company’s vertically integrated supply chain in the Fiji islands, there are several cross-selling opportunities for The Calmer Co products in Leilo’s distribution network.
“We have become a bigger, broader business with revenues over 4 million per year, now growing faster than ever,” said Noble.
Broady said joining forces with Fiji Kava would strengthen the brand’s supply chain and provide a more diverse product portfolio.
“Leveraging our widespread book of business, digital footprint and existing brand equity in the US, this move makes us the most robust company in the domestic and international kava markets,” said Broady.
