Australian fashion retailer Universal Store has acquired Byron Bay brand Thrills for $50 million. The acquisition is on a debt free/cash free basis, representing 6.8x FY22 underlying EBIT.
It will consist of $17.5 million in cash, $17.5 million in UNI shares and a notional amount of $15 million in deferred variable consideration (DVC).
Universal Store CEO and MD Alice Barbery said the acquisition is a strategic move for the major fashion retailer.
“In Thrills, Brooke, Tabitha and Ryan have built an iconic youth fashion brand and have a proven capability to deliver products our customers love,” Barbery said.
“Thrills is currently the highest selling third party brand in our Universal Store business and has been a consistent and growing part of our product offer for over eight years.
“We are excited by the opportunities a closer partnership can deliver in both product and brand development, as well as further expansion of Thrills direct-to-consumer channel.”
Also known as Cheap Thrills Clothing or CTC, the indie label already has a long relationship with Universal Store, spanning around nine years. It also harnesses relationships with other third-party retail accounts in Australia, New Zealand and the USA.
Sales to Universal Store represent around c.26% of CTC’s business, while the sale of CTC’s products represents c.9% of Universal Store FY22 sales. CTC sales to Universal Store has grown by c.51% since FY20.
After its founding in 2011 in Byron Bay, CTC…