Comprehensive M&A data with integrated detailed company information
Birchbox in talks with potential buyers: Recode
Posted on Thursday, 10 August 2017 14:15
US-headquartered make-up-focused subscription service Birchbox has held discussions with a number of prospective acquirors over a possible sale of the company, according to Recode.
Citing people in the know, the tech news provider said several retailers, including supermarket behemoth Walmart, have been involved in the negotiations.
However, it is not clear how advanced the talks are or how likely it is that an agreement will be reached and none of the parties involved have commented on the report.
Recode noted that news of the possible sale comes as New York-headquartered Birchbox struggles to regain profitability. If it is successful in doing so, sources told the news provider it will most likely remain independent.
However, several people close to the business have been cited as saying a sale is the more likely outcome.
Birchbox received a USD 15.00 million round of funding from First Round Capital, Accel Management and Viking Global Investors in August 2016.
Should an acquisition go ahead it would represent an exit for these parties, as well as previous investors, which include Glynn Capital Management, Consigliere Brand Capital, Slow Ventures and Red Swan Ventures.
Birchbox provides subscribers with a monthly box of five samples of personalised makeup, haircare and skincare products delivered to their door.
The firm’s service is designed to enable users to easily try and learn about beauty products online while making purchases if they like the products.
In 2012 it branched into the men’s market, offering tailored shipments of grooming and lifestyle products.
Birchbox has an international presence, with locations in the UK, France, Spain and Belgium.
Walmart has been fairly active on the acquisition trail this year; in February it signed on the dotted line to pick up Michigan-based outdoor apparel and equipment retailer New Moosejaw for USD 51.00 million.
This was followed by June’s agreement to take over online men’s clothing retailer Bonobos for USD 310.00 million. Closing is expected to follow by the beginning of the third quarter of fiscal 2018, which ends on 31st January 2018.
© Zephus Ltd