Quadrant Private Equity weighs Sukin acquisition

Australian skincare brand Sukin is shaping up to be strongly sought after in a Greenhill-advised sale process.

A number of buyout funds are expected to at least kick the tyres on the sale of the skin care brand Sukin, but one of the more interesting firms among them taking at least an early glance at the business is Quadrant Private Equity.

It is still early days in the sale process for the brand owned by the failed BWX Group, which fell into receivership early this year.

But Sukin, considered the jewel in the crown of the BWX portfolio, is so far shaping up to be popular.

Quadrant is understood to have been taking an early look but is by no means gunning strongly for the asset – for the moment anyway.

But it’s an obvious candidate for its growth fund, and it’s a space where Quadrant has had success before.

Sydney-based Quadrant, spearheaded by Chris Hadley and Marcus Darville, made a fortune for investors with the sale of the online cosmetics retailer Adore Beauty amid the global pandemic.

Quadrant purchased 60 per cent of Adore Beauty in a deal that valued the business at $110m and it was floated in 2020 amid lockdowns for $653.3m.

Quadrant retained a 32.5 per cent stake and founder Kate Morris 10.8 per cent.

Now the market has fallen out of love with the company in the wake of the Covid-19 era and its market value is $74m, with technology companies – particularly those still making a loss like Adore Beauty – and the retail sector being particularly hard hit in a rising interest rate environment.

Last financial year Sukin lifted its market share by 12 per cent but revenue fell 14.9 per cent to $71.5m. Yet it remained the leading natural skincare and number two skincare brand in the Australian grocery channel.

Working on the sale of Sukin is Greenhill, which was appointed by BWX receiver KPMG.

KPMG came on the scene in early April after CBA called in a loan for BWX, last on its books at $105m.

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 earlier this month appointed KPMG US to lead the sale of the US operations that hold The Mineral Fusion and Andalou brands.

The BWX Group was listed and counted billionaire Andrew Forrest as its major shareholder with 20.3 per cent.

It was worth about $1bn five years ago and last traded 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.