Nexgel acquires Silly George for $600k plus earn out

Nexgel, Inc. (NASDAQ: NXGL), a leading provider of ultra-gentle, high-water-content hydrogel products, has announced the acquisition of Silly George, an international beauty company specialising in eye and eyelash consumer products. Silly George has a revenue run rate of approximately $2 million.

Transaction snapshot

  • Deal value: $400,000 in cash, $200,000 in Nexgel common stock, and a 4-year net profit earn out
  • Deal multiples: N/A
  • Deal type: Acquisition
  • Investors: N/A

Silly George offers a full product line of eye and eyelash products, including lash extensions, lash serum, and accessories. The company predominantly sells direct-to-consumer and on Amazon in the United States, United Kingdom, Australia, and the Netherlands. Silly George recently launched a new line of Pop-On Lashes, which are non-toxic, long-wear eyelash extensions that are easy to apply and remove, lasting five to ten days.

Adam Levy, CEO of Nexgel, said the acquisition of Silly George represents another step forward in achieving the critical mass and cash flow necessary to reach profitability. He noted that there are immediate operational synergies between the companies, including optimisation of marketing and overlap in expenses that will drive operating margin expansion.

Miranda Semmens, CEO of Silly George, stated that Nexgel's focus on skin integrity and overall skincare strongly complements Silly George's commitment to high-quality beauty products. She believes Nexgel is the right partner to bring the business forward in the next stage of its growth.

Under the terms of the agreement, management of Silly George will remain in place, and inventory will be provided by the seller at cost and paid for after the sale of each unit.

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