Mohawk buys assets of four e-commerce business brands

2 December 2020 (Last Updated December 2nd, 2020 15:13)

Technology-enabled consumer products company Mohawk has purchased the assets of four e-commerce business brands.

Technology-enabled consumer products company Mohawk has purchased the assets of four e-commerce business brands.

The transaction is in line with the company’s mergers and acquisition strategy. The businesses are Mueller, Pursteam, Pohl and Schmitt, and Spiralizer.

Mohawk bought the acquired brands from 9830 Macarthur, ZN Direct, and Reliance Equities Group at cash plus stock consideration.

The deal includes $25m in cash, issue of 4,220,000 of the company’s common shares and a promissory note of approximately $15.8m million associated with inventory acquired from the sellers.

Mohawk co-founder and chief executive officer Yaniv Sarig said: “We are excited to announce this acquisition, which we are confident will achieve key strategic, financial and growth objectives for Mohawk and furthers our goal of building the consumer product platform of the future.

“The 43 new products we are adding to our portfolio are mainly part of the home and kitchen small appliances category and will expand our existing large appliance product portfolio.

“In the last twelve months, private equity and venture capital-backed companies have raised significant funding to fuel the acquisition of Amazon brands and we believe our technology platform and agile supply chain position Mohawk to be a leader in this space moving forward.”

The company also announced the refinancing of term loan.

The combined unaudited trailing 12-month revenue and operating income of the acquired brands as of 30 September was approximately $77.5m and $13.1m, respectively.

Mohawk increased its 2020 outlook with net revenue to be in the range of $180m to $190m.

In August, the company entered into a definitive agreement to acquire the assets of health and personal wellness category e-commerce brand Truweo.