✓ 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.