OrotonGroup has announced today that it has agreed to purchase a 30% stake in Australian lifestyle accessories brand, The Daily Edited (TDE), for $4.5 million.
The decision is part of Oroton's strategic growth initiative which sees the brand expand its offering of affordable luxury brands, as well as creating further opportunity to tap into a more youth orientated market.
TDE will also provide Oroton with the ability to accelerate the group’s online offering while complementing its existing sales channels.
Oroton has revealed that they will expect immediate growth in shares as forecasting has indicated a double-digit EPS accretion for FY18.
The deal is comprised of a combination of cash and OrotonGroup shares, with Oroton able to raise its interest in TDE to a majority stake in future.
OrotonGroup chairman John Schmoll said the new deal would see the group grow its customer base while developing further options for expansion.
"The TDE brand, management team and online presence will provide OrotonGroup with fresh new growth options and access to a fast-growing, younger Australasian customer base, presenting attractive future growth optionality over and above that already embedded in our business today."