Bondi Sands acquired by Japanese giant Kao Corporation for $450m

Kao Corporation Acquires Bondi Sands for $450 Million

In a significant move in the beauty and skincare industry, Japanese multinational Kao Corporation has acquired the iconic Australian tanning and skincare brand, Bondi Sands, in a deal estimated to be worth $450 million.

Transaction Highlights:

  • Deal Value: Approximately $450 million.
  • Valuation multiple: The deal values Bondi Sands at approximately 2.36 times its revenue
  • Acquirer: Kao Corporation, a Tokyo-listed chemicals and cosmetics giant established in 1887, known for brands like Biore, Jergens, Oribe, and KMS.
  • Target: Bondi Sands, Australia's leading self-tanning brand, founded in Melbourne in 2012. Bondi Sands products are sold in over 32 countries, including the US and the UK, and are available in over 40,000 stores worldwide.

Bondi Sands Snapshot:

  • Revenue: Bondi Sands posted sales of $105.8 million in FY22 and expects to achieve over $190 million in total revenue for 2023.
  • Net Profit: The company reported a net profit of $31.4 million in FY22, a significant increase from $20.1 million in the previous year.
  • Growth: The brand's SPF range, introduced in 2017, has been growing at an impressive rate, making it the fastest-growing SPF brand in both Australia and the UK. The company is on track to produce a staggering 18 million units in 2023 alone.
  • Market Share: Dominates the self-tanning market in Australia with a 55% market share.

Looking Ahead: Bondi Sands has been making significant inroads into the US market. A testament to their growing influence, the brand's products will soon be available in over 4,000 Walmart locations across the US. This move is expected to further bolster their presence and sales in the region.

Bondi Sands co-founder and CEO, Shaun Wilson, expressed enthusiasm about the partnership, highlighting the potential for growth and expansion into untapped markets. "The integration of Kao's renowned scientific and technological resources into our operations is an unparalleled opportunity that will significantly contribute to the exponential growth of our brand," Wilson stated.

Despite facing challenges, including a class-action lawsuit in the US over alleged greenwashing of its sunscreens, Bondi Sands remains a dominant force in the self-tanning market. Under Kao Corporation's ownership, the brand is poised to expand its global presence further.

A Strategic Move for Kao: Kao Corporation's acquisition of Bondi Sands aligns with its strategic focus on skincare, particularly in the skin protection and suncare segments. The company has identified skincare as a medium-term growth driver and is actively seeking aggressive investments in this category. The addition of Bondi Sands provides Kao with a solid footing in the self-tanning market, complementing its existing portfolio of renowned skincare and haircare brands.

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