SYDNEY, UK: Wellnex Life Limited (ASX: WNX) has entered into a binding Asset Sale Agreement to acquire 100% of the premium teeth whitening brand Mr. Bright.
Wellnex will acquire Mr. Bright for $1.5 million in ordinary shares in Wellnex at a minimum price of $0.10 per share or the 5-day VWAP price immediately prior to settlement, whichever is
higher.
There are additional potential earnouts for FY23 and FY24 subject to EBITDA. Shares issued under the acquisition will be voluntary escrowed as following:
- 50% of shares escrowed for 12 months from issue
- 50% of shares escrowed for 24 months from issue
Wellnex anticipates settlement to occur immediately after the Company’s AGM to be held in November, subject to shareholder approval.
Mr Bright, founded in 2016, is a teeth whitening brand that offers a range of premium and effective take-home teeth whitening solutions. Mr. Bright uses the latest in high-tech safe dental technology to give consumers their own brilliant smile. Mr. Bright products do not contain the commonly used harmful chemical hydrogen peroxide, instead using glycerine, sodium bicarbonate and cranberry to deliver whitening agents deep into the tooth enamel.
Mr. Bright has distribution channels in the USA and UK, as well as online sales channels, however the products have poor penetration in the Australian market. It is expected that Wellnex’s relationships will expand the distribution channels domestically, significantly increasing revenue and profitability.
Mr. Bright has seen strong year on year growth and has a strong EBITDA margin of circa 20%, which is anticipated to increase as distribution channels expand and efficiencies are achieved post-acquisition.
Annualised revenue for Mr. Bright was circa $4 million and normalised EBITDA for FY22 was circa $800,000, with continued growth in FY23 so far and ranging recently secured in Chemist Warehouse New Zealand.
The teeth whitening market has experienced significant growth driven by an increase in awareness of oral hygiene, rising acceptance of technological innovations in teeth whitening products and growing focus on aesthetics in the dentistry industry.
The global teeth whitening market is expected to be worth US$8.2 billion by 2027 (Market Research; IBIS World). With a premium and effective product the Company anticipates significant growth in revenue and profitability for Mr. Bright into the future.
George Karafotias, CEO of Wellnex Life, said: “Wellnex is overjoyed to be adding to our diversified portfolio with the acquisition of premium teeth whitening brand, Mr. Bright. We expect to increase the brand value for Mr. Bright and grow revenue, margins and profitability for the wider Wellnex group. The acquisition supports Wellnex’s objective of delivering innovative and quality brands and products into the fast-growing health and wellness market to meet consumer’s changing preferences.”