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Noni B (ASX: NBL) is set to acquire 50.1 per cent of New Zealand retailer EziBuy from Alceon Group for just $1.
The acquisition will boost Noni B's online sales to approximately $200 million, representing 20 per cent of the group's total revenue, and will give Noni B access to EziBuy's database of over 2 million mostly New Zealand-based customers.
Post-acquisition, expected to be completed on 28 October, Noni B will have a call option to acquire the remaining 49.9 per cent interest in EziBuy on 31 December 2020 for $11 million.
EziBuy is a New Zealand-based retailer specialising in fashion, gifts, homewares and beauty goods.
The Kiwi company is one of the largest multi-channel retailers in Australasia and generates around NZ$125 million in revenue, of which over 80 per cent is through its digital platform.
Noni B managing director and CEO Scott Evans says the acquisition will cement Noni B as a fashion retail leader in Australasia.
"This will be another exciting step forward for the Group, consolidating our position as one of Australia's leading apparel retailers," says Evans.
"It will provide a low-risk opportunity to fast-track our digital strategy, increasing our digital income to 20 per cent of the combined group's revenue."
EziBuy joins Noni B's portfolio of retail brands including Millers, Rockmans, Noni B, Rivers, Katies, Autograph, W Lane, Crossroads and beme.
Acquisitions buoyed Noni B's results in FY19, with the $31 million spent on five iconic clothing brands delivering doubled revenue and increased profits.
Noni B scooped up the brands Millers, Katies, Crossroads, Autograph and Rivers from Specialty Fashion Group (now City Chic Collective) in May 2018.
Noni B highlights revenue jumped 136 per cent to reach $372.4 million in FY19, while EBITDA was up 22 per cent at $45.5 million.
Shares in Noni B are up 1.57 per cent to $2.59 per share at 10.47am AEDT.
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