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BWX, BWX LIMITED
blacksheep
post Posted: Nov 10 2017, 06:56 PM
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In Reply To: JSB's post @ Oct 17 2017, 02:43 PM

How's your shorts looking, JSB smile.gif
Goldman Sachs launches BWX shortfall bookbuild

QUOTE
The broker was calling for bids from $5.92 a share. The stock last traded at $6.72, while the theoretical ex-rights price was $6.76


Read more: http://www.afr.com/street-talk#ixzz4y187psCW
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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Oct 19 2017, 10:42 AM
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In Reply To: JSB's post @ Oct 18 2017, 01:22 PM

QUOTE
BWX ACQUIRES ANDALOU NATURALS, THE NO. 1 SELLING FACIAL SKIN CARE
BRAND IN THE US NATURAL CHANNEL, AND LAUNCHES A$100M ENTITLEMENT
OFFER
 BWX Limited (BWX or the Company) has entered into an agreement to acquire
Andalou Naturals, Inc. (Andalou Naturals) for initial consideration of US$80m, plus
potential additional amounts subject to Andalou Naturals achieving particular
financial milestones.
 Andalou Naturals is a leading skin, hair and body care brand in the US, inspired by
innovative product development and quality natural ingredients and is expected to
generate revenue for FY2018 of US$41m and pro forma EBITDA of US$8.5m.
 Implied multiple of 9.4x EV / FY2018 pro forma forecast EBITDA, or 8.4x including
expected annual cost synergies1
. The acquisition creates a sizeable US operating platform when combined with
Mineral Fusion, enabling management to drive operating efficiencies which are
expected to deliver estimated annualised cost synergies of US$1m by the end of the
first full year of ownership.
 The acquisition presents the opportunity to expand distribution of Andalou Naturals
and other BWX brands across BWX's broadened geographic and channel footprints.
 Initial cash consideration of US$64m to be funded via a fully underwritten 1 for 5.7
pro-rata accelerated renounceable entitlement offer to raise A$100m, with remaining
proceeds used to paydown existing debt facilities and fund transaction costs.
 Approximately 10% EPS accretive on a pro forma FY2018 basis before expected
annual cost synergies.







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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington

Said 'Thanks' for this post: JSB  
 
JSB
post Posted: Oct 18 2017, 01:22 PM
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In Reply To: blacksheep's post @ Oct 18 2017, 10:36 AM

Yeah, might explain yesterday's rise somewhat.

I daresay organic growth is slowing somewhat - recent deal with Coles has them discounting 40%, which in turn has the existing distributors discounting similar margins to compete. Touting close to 40% EBITDA margins while distributors are in forced clearance mode, especially when Sukin sales are not B2C facing - it's going to be an issue in coming periods.

Sukin as its core brand is not yet offered on its most recent acquisition's platform (Nourished Life), while Mineral Fusion products are. Another US facing Natural acquisition suggests to me that the Mineral Fusion acquisition was staggeringly overpriced for the assets and “distribution network” they received ($55m goodwill on a $63m consideration(!), $826k on PPE).

I’m expecting higher revenue due to bolt-ons, but lower like-for-like sales, significantly lower EBITDA margins, and big impairments over the next 12-18 months.



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blacksheep
post Posted: Oct 18 2017, 10:36 AM
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In Reply To: JSB's post @ Oct 17 2017, 02:43 PM


From AFR this morning -
QUOTE
Branded skin products manufacturer and marketer BWX Ltd is believed to be seeking to finalise about a $100 million equity funding package for a new acquisition.
Acquisition is said to be a US-based naturals business. Might favour your currently burning shorts, JSB, depending on the the deal smile.gif

Read more: http://www.afr.com/street-talk#ixzz4vobsYL00




--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington

Said 'Thanks' for this post: JSB  
 
blacksheep
post Posted: Oct 17 2017, 03:06 PM
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In Reply To: JSB's post @ Oct 17 2017, 02:43 PM

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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington

Said 'Thanks' for this post: JSB  
 
JSB
post Posted: Oct 17 2017, 02:43 PM
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In Reply To: blacksheep's post @ Oct 17 2017, 02:17 PM

Probably jumped the gun, but with a MCAP approaching AU$700m may just be worth holding on. Wish me luck Blacksheep, going against Bennelong and Montgomery,I'm gonna need it!.


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blacksheep
post Posted: Oct 17 2017, 02:17 PM
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In Reply To: JSB's post @ Oct 17 2017, 02:12 PM

See what you mean biggrin.gif

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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
JSB
post Posted: Oct 17 2017, 02:12 PM
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Oooft, my shorts are burning on this one. $7 and climbing..


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nipper
post Posted: Jul 3 2017, 03:46 PM
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QUOTE
Skincare company BWX is paying $US38.4 million ($A50.5 million) cash for US-based natural cosmetics company Mineral Fusion National Brands. The acquisition of Mineral Fusion gives it a beachhead in the US, making it the market leader in the US natural cosmetics market.

BWX plans to sell its Sukin skincare range through Mineral Fusion's US distribution network, which includes health food chains Whole Foods Market, Sprouts and Natural Grocers and mass market retailers such as pharmacy chain CVS, Wegmans and Meijer. BWX also plans to expand Mineral Fusion sales outside the US, leveraging its distribution networks in Australia, the UK, New Zealand and China.

"This transaction puts two leading brands in quite strong markets together to give us scale and a platform for accelerated international growth," BWX chief executive John Humble told investors. "It puts us well down the pathway of becoming a genuinely global personal care company," he said.

Mineral Fusion has more than 150 stock-keeping units across 45 product categories, including colour cosmetics (which account for 65 per cent of sales), skin care, nail and hair care. Colour cosmetics is the fastest growing segment of the personal care market.

The Mineral Fusion brand was developed in 2009 specifically to meet Whole Foods' demand for high quality natural cosmetics and is now sold in more than 3000 retail outlets across the US.

Mineral Fusion also has a strong online presence including Amazon.com, with online sales growing 50 per cent (CAGR) over the last three years and now representing more than 10 per cent of total sales.

BWX paid Mineral Fusion's owner, private equity firm North Castle Partners, about 11 times earnings before interest tax depreciation and amortisation of $US3.5 million or $A4.6 million for the California-based business. The deal, signed on June 30, also includes a potential $US4.6 million ($A6.1 million) earn out payment if Mineral Fusion achieves agreed gross margin targets over the next 12 months, lifting the value of the transaction to $US43 million ($A56 million).

While the multiple is higher than that for recent beauty industry acquisitions, Mr Humble said the investment was expected to be earnings per share accretive in the first full year. The acquisition is expected to boost BWX's annual revenues by about $US24 million ($A31.5 million) or 40 per cent.

"This transaction gives us great opportunities to expand not just in the US for Sukin but for Mineral Fusion in Australia and the international networks we're in the process of establishing," Mr Humble said. "Although it's in 3000 doors (in the US) that's less than 10 per cent of the addressable doors in the US - there's massive opportunity for growth and an incredible amount of low hanging fruit," he said.

Mr Humble also affirmed the company's previous guidance for a 30 per cent increase in EBITDA in 2017, excluding the impact of the Mineral Fusion deal.

"Whilst we continue to grow Sukin both in Australia and offshore, we have been on the look out for acquisitions that align with the overall strategy for BWX" . "The product suite of Mineral Fusion provides BWX a gateway into the natural cosmetics categories, a key area of growth going forward as we see consumers looking for more natural alternatives in all products they use," he said.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Mar 24 2017, 02:49 PM
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QUOTE
BWX, a genuine small-cap worth less than $500 million, saw its shares decline almost 30 per cent in the back half of last year. The company owns the Sukin range of skincare and personal care products, with strong momentum in its Australian business, and exciting growth opportunities in the UK, Canada, China and elsewhere.

Besides being caught up in the [recent] growth sell-off, it also suffered by association with Bellamy's problems, notwithstanding limited relevance. We increased our holding. The company reported very strong half-year earnings, pushing its shares higher by 20 per cent from recent lows
Julian Beaumont - Investment Director, Bennelong Australian Equity Partners (a Bennelong Funds Management boutique).



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
 


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