Greenhill tapped for BWX sale

Sukin is a prominent brand in the BWX stable of skincare products. Picture: Supplied.

The receivers of BWX Group have hired advisory firm Greenhill for a sale of its Australian business that includes skincare brands such as the well known Sukin.

KPMG was appointed receiver of BWX on April 4 after lender CBA called in a loan last on its books at $105m.

At that time, it fielded a number of inquiries for the operation from local and international parties.

KPMG said it had made significant headway in normalising the operations and was now focused on a sale of the brands and products of the business.

Partner David Hardy said they expected significant interest given the strength and popularity of the Sukin brand.

It comes after Grant Samuel was earlier appointed to advise on the sale of the company’s shareholding in Go-To skincare, founded by Zoe Foster Blake, and appointed KPMG US to lead the sale of the US operations earlier this month that holds The Mineral Fusion and Andalou brands.

“The sale of the both the BWX US operations and the shareholding in Go-To have commenced with strong interest shown,” Mr Hardy said.

BWX is an ASX-listed beauty and wellness brands operator with headquarters in Clayton, Melbourne.

The Greenhill process is yet to start, but among suitors are expected to be global skincare brands as well as local buyers like private equity.

Sources say most of the value in the business is tied up in the Sukin brand.

It comes after NZ e-commerce business Health Post Limited and Flora & Fauna founder Julie Mathers acquired the assets and operations of BWX Digital, comprising of the intellectual property, websites, data and stock of Nourished Life and Flora & Fauna, as announced on May 3.

The BWX Group was listed in Australia and has over 100 employees and is involved in the manufacture, distribution and marketing of beauty products, sold predominantly under the Sukin, Andalou Natural and Mineral Fusion brands.

It counted billionaire Andrew Forrest as its major shareholder 20.3 per cent.

Allegro Funds weighed a recapitalisation of the business but walked away from the opportunity to focus on its Slater and Gordon law firm purchase, while private equity funds such as Bain Capital and Avenue Capital had been hovering.

BWX has fallen from a business worth about $1bn five years ago to last trade as a group with a $40m market value.

Industry analysts say that BWX operated in a tough industry, where its major customers were Coles, Woolworths and Chemist Warehouse.