LONDON, UK: South West Brands Limited (SWB) has entered into a Sale & Purchase Agreement (SPA) for the sale of SWB to OTO International Limited (OTO) for an enterprise value of £6.235 million to be paid in OTO shares.
OTO is an omni-channel premium wellness brand renowned for its use of holistic plant ingredients and CBD in its portfolio products and since inception in 2018 has delivered year-on-year revenue growth of 100% and is in a strong position to scale and reach profitability in the near term, whilst continuing to build significant brand equity across multiple territories.
SWB is a portfolio company of SEED Innovations. SEED will receive a total of £423,000 in OTO ordinary shares following conversion of the CLN’s SEED holds in SWB and will be repaid cash of £167,000, being repayment of the £150,000 8% Convertible Loan Note (‘CLN’) plus accrued interest of £17,000, invested on 4 October 2021.
Following a total investment into South West Brands of £500,000 by SEED, the total return represented by the Sale is £590,000, a blended return of 1.18 times the original investment.
Following the completion of the Sale, SEED will hold 71,502 ordinary shares representing 1.4% of OTO.
OTO is a premium wellness brand renowned for its use of holistic plant ingredients and CBD in its portfolio products. Founded by Gemma Colao and launched in the Harrods Beauty Hall in 2019, OTO’s positioning as the premium wellness brand of choice has enabled the business to build three diversified and robust revenue streams (including retail, spa and e-commerce) across multiple territories including the UK, USA, Japan and Europe.
Rebekah Hall, Founder, South West Brands said: “The acquisition of SWB by OTO provides huge acceleration in our mission to build a portfolio of global female focused wellness brands that serve our customers at the cutting edge of innovation. Women’s health and wellbeing has long been underserved in the consumer goods industry. In OTO, a fellow female founded and focused business, we have found a shared vision, ethos and drive. The enlarged OTO Group will undoubtedly be an exciting and dominant force in the wellness industry which I look forward to being part ofI.”
James Bagley, CEO at OTO Group said: “The consumer need for well-being and self-care products is on the rise, with the global wellness market already worth trillions, and still growing at c.5.5% CAGR. The market is at an inflection point, as early players and sub-standard products make way for leading brands and lifestyle propositions that are thoughtful, effective, and set to drive explosive growth.”
Having worked with, and for, so many exceptional people over the years – it’s the privilege of a lifetime to now be working for such extraordinary female founders in Gemma and Rebekah, as well as the board and the whole team. I’m proud of what we’ve achieved, and enthusiastic about what’s next!”
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