Dusk Group Ltd. · ASX:DSK
Dusk — Merger or Acquisition (December 2021)
12 slides from Dusk's merger presentation, Dec 17, 2021
Slide 1: Acquisition of Eroma
Acquisition of Eroma Investor Presentation December 2021
Slide 2: Transaction Overview
Transaction Overview • dusk has agreed to acquire 100% of Eroma Group (“Eroma”) (“Acquisition”) for an Enterprise Value of $28m (cash and debt free) Transaction Details • Consideration comprises $15m in cash and a $13m placement of ordinary shares in dusk, issued to all Eroma shareholders, including
Slide 3: Transaction Overview (Cont'd)
Transaction Overview (Cont’d) • Australia’s #1 supplier to the ‘small maker’ segment of the • Australia’s #1 specialty retailer of home fragrance products Home Fragrance market • TAM estimated at ~$0.7bn (FY21 retail value) • TAM estimated at ~$0.15bn (FY21 wholesale value) • FY21 Sales of $149m • F
Slide 4: Eroma Overview
Eroma Overview OVERVIEW LOCATIONS • Supplier of a complete range of home fragrance component parts (and some Showroom and Warehouse finished products), candle making kits and bath & body products • ~95% of orders are placed online, ~1/3 of which are transacted by customers Warehouse, Manufacturing,
Slide 5: Eroma Overview (Cont'd)
Eroma Overview (Cont’d) Eroma’s Unique Selling Proposition (USP) Eroma’s Future Growth Drivers • Scope for additional showrooms in Adelaide and • Operates showrooms in Melbourne, Sydney National Showroom Auckland, and potentially second show rooms in and Brisbane, with Perth opening shortly Showroom
Slide 6: Eroma's Range and Customers Are Diverse
Eroma’s Range and Customers Are Diverse Eroma’s wide product offering is End products made by customers are: a ‘one stop shop’ for candle makers Labels, etching, Candles Reed diffusers Waxes electroplating (15%)(1) (5%) Soaps Perfumes Containers Packaging and Lids (10%) (20%) Customers are highly fr
Slide 7: Strategic Rationale
Strategic Rationale 1 Increase our TAM: Eroma represents a logical and adjacent but non-competitive business to dusk in the Australian home fragrance market with its leading presence in the ‘small maker supplier market’. Eroma offers a wide range of products (wax, wicks, fragrance, vessels, boxes et
Slide 8: Key Metrics Post-Acquisition
Key Metrics Post-Acquisition Pro Forma FY20 & FY21 Revenue Pro Forma FY20 & FY21 EBITDA (Pre AASB16) 179 30 124 47 23 6 101 149 17 2 41 15 FY20 FY21 FY20 FY21 dusk Eroma dusk Eroma Pro Forma FY20 & FY21 Revenue Mix(1) Facilities FY20 FY21 127 Retail stores (dusk) 19% 17% 4 Showrooms (Eroma) 5 Distri
Slide 9: Transaction Structure, Funding and Financial Implications
Transaction Structure, Funding and Financial Implications Transaction Structure and Funding Financial Impact on dusk • The Acquisition is expected to deliver EPS accretion(1) of over 20%, (before synergies) from year one • 100% acquisition for $28m on a cash-free Key debt-free basis • There is no ch
Slide 10: Appendix
1 Appendix
Slide 11: Eroma Profit and Loss
Eroma Profit and Loss FY20 FY21 Unaudited Eroma Group financials $m $m Sales 22.8 30.1 FY21 margin expansion driven by: Cost of Goods Sold (11.2) (12.2) • Gross profit 11.6 17.9 % Margin 51% 60% Employee Costs(1) (4.2) (5.7) • (1) Occupancy Costs (1.5) (1.8) (1) Other Operating Costs (3.5) (4.6) Tot
Slide 12: Disclaimer
Disclaimer dusk Group Limited (“dusk”) (ABN 38 603 018 131) advises that the information in this presentation contains general background information about dusk’s activities as at the date of the presentation. It is information given in summary form and is based on information available to dusk that