Overview of the acquisition
- OTO acquires and joins forces with South West Brands, creating OTO Group, a UK based, female-founded global consumer packaged goods group of lifestyle brands.
- The Group is based around the existing businesses and brands of OTO International ("OTO") and South West Brands ("SWB").
- The acquisition of SWB by OTO is the first step of a ‘build and buy’ strategy and accelerates the group’s mission to build the wellness brands of the future, today.
- Operating at the cutting edge of global wellness trends, the group is led by a world-class management team with a track record of successfully establishing and growing FMCG lifestyle and wellness brands.
- OTO and South West Brands share a focus on Responsible Business practices and SWB is a B-Corp Pending.
Financial impact
- £7m acquisition of female-founded, UK-based CPG business South West Brands, which includes consumer brands FEWE (female wellness), Love MeMeMe (Gen-Z beauty).
- FY 2023 impact for OTO of c. £2m in Wholesale Sales revenue.
- Group sales growth now expected to be between +80% and +150%, to £4-6M, with c.65-70% gross margins.
- Significant operating synergies across the group, delivering break-even position within the first 12 months and 15-25% positive EBITDA in 2024 FY.
- OTO has secured additional funding and will continue to raise to accelerate growth and achieve scale ahead of a potential public listing.
LONDON, April 20, 2023 /PRNewswire/ — Gemma Colao, Founder, OTO said: "I have always been passionate about creating products and building brands that people feel inspired by – as a creative and designer, it’s my heartland. The opportunity to work with SWB’s inimitable founder, Rebekah Hall to further our mission of building a powerhouse brand for women, by women is incredibly exciting."
Rebekah Hall, Founder, South West Brands said: "The acquisition of SWB by OTO accelerates our mission to build a portfolio of global female focused wellness brands that serve our customers at the cutting edge of innovation. In OTO, a fellow female founded and focused business, we have found a shared vision, ethos and drive."
Mindy Grossman, Board Advisor to SWB, and now to OTO Group said: "People’s health and wellness has always been incredibly important to me. Now more than ever, we need access to well-formulated, high-performing products and resources backed by current research to promote better outcomes that foster resilience. With SWB joining OTO as an industry leader, these powerhouse brands can leverage their cross-category expertise in product development, innovation, retail and spa, and global distribution to democratise wellness. They’ll be able to serve customers across age group and socioeconomic backgrounds with high-quality, efficacious products to enhance all aspects of their lives. I couldn’t be more excited to join the team as an adviser on their meteoric rise."
Leadership Team
- Gemma Colao – Founder (OTO), Chief Brand Officer.
- Rebekah Hall – Founder (SWB), Chief Growth Officer.
- James Bagley – Co-founder (OTO), Group CEO.
Current board advisors Nicky Kinnaird MBE, Mark Barnard, Simon Minitzer and Antonia Jamison are joined by Mindy Grossman and Lord Mervyn Davies, Baron Davies of Abersoch, CBE.
View original content:https://www.prnewswire.co.uk/news-releases/acquisition-of-south-west-brands-by-oto-international-301802432.html
