Project Oracle - Business Asset Sale

Project Oracle

The opportunity to acquire a group of companies comprising a well-established vaping business with an established e-commerce platform, manufacturing facility and laboratory, and a leading range of branded CBD products stocked by major retailers.

✓ Platform acquisition in the Vaping and CBD markets

With LTM sales of £2.7m, the Group has an exciting portfolio of vaping and CBD products retailed through its own B2C transactional e-commerce platform and distribution into major UK retailers as well as independent retail and early stage agreements with international buyers.

✓ An established player in both the Vaping and CBD sectors

Founded in 2013 by Management whilst the UK e-cigarette market was still in its infancy, the Group built its reputation around being the UK’s most customisable e-liquid brand before diversifying into its award-winning range of CBD products in 2018, which are stocked at major high street retailers. The Group also includes businesses offering third party e-liquid manufacturing and laboratory and compliance services.

✓ Comprehensive range of proprietary Vaping and award-winning CBD cosmetic brands

The e-liquid stable comprises seven sub-brands positioned at a range of price-points, aimed at users from entry-level to advanced. The e-liquid division has more than 900 MHRA registered products and the Group has 18 UK registered trademarks.

The Group’s CBD products include award-winning cosmetics, including skin and body care ranges, and CBD-infused tea which are stocked by major brands.

✓ Strong gross margins across the business, allied with synergy potential and market growth opportunities

As an e-commerce-led brand, the e-liquid division is well-positioned in the current retail environment to grow fast as part of an acquirer’s operations, as well as leverage consumers’ migration from high-street to online and from traditional smoking products to vaping.

There is also a key opportunity to accelerate and capitalise on the early growth of the CBD range of products, which typically achieve a Contribution Margin of over 50%, in an industry which is at an early stage in its lifecycle. In addition, a buyer with established sales channels will be able to further drive sales by promoting the CBD products through its platform.

The UK CBD product market is forecast to grow from £300m in 2018 to £1bn by 2025, with the market being one of the fastest growing wellbeing product categories in the UK.

“Oracle will provide any acquirer with a solid growth platform in the vaping and CBD markets.

With the additional marketing support it needs to grow, Oracle’s new owner could capitalise on its loyal customer base and recognised e-liquid cand CBD brands to achieve a significant return on their investment.”

Whilst the business is still trading, the directors anticipate that Oracle will not be in a position to service its creditors in the near future and it is seeking bidders for its trade and assets, with a sale of the business expected to proceed by way of an asset purchase from administration.

Further information on this opportunity is available within a data room and will be provided to interested parties subject to the signing of an NDA within the data room.

Expressions of interest are requested by 4th January 2021 | 5pm

Indicative offers are requested by 11th January 2021 | 5pm

Bids will only be considered from parties with the ability to complete the acquisition on or before 29th January 2021.

Please contact:

Gary Harper
07958 460042
gary.harper@johnpye.co.uk

Disclaimer
This information which does not proport to be comprehensive, has been provided by our client and has not been independently verified. No representation or warranty, express or implied, is or will be given by our client, its directors, employees or advisers or any other person as to the accuracy or completeness of this information and so far as permitted by law.