Adore Beauty has snapped up Ikou, a wellness and skincare brand, for $25 million as the online beauty retailer attempts to build a more lucrative private label business.

The company told investors that the purchase – for an upfront $20 million, with $5 million due in 18 months – was an “ideal strategic fit”. Ikou, established in the Blue Mountains 17 years ago by Naomi and Paul Whitfeld, sells organic skincare, bath and body, home fragrance and herbal tea products through its three shops in NSW.