PNB Consolidated Acquires Natural Skincare Brand Sukin For $70M

The beginning of the New Year has brought a new surprise for the skincare industry. PNB Consolidated has bought the much-loved brand Sukin. The company is significantly owned by John Humble, who happens to be the former CEO of BWX, which owned Sukin. Thus, in a twist of events, the brand has come back under the control of its previous owner through the acquisition. The price tag of this massive transaction is close to $70 million, and this development is expected to revive the personal care brand.

BWX had become debt-ridden and had collapsed into administration in early 2023, which had pushed the future of Sukin into the dark. However, PNB Consolidated has taken over its manufacturing and assets to regain its lost glory. The acquisition was completed in an auction that made Mr Humble get into a bidding challenge with Dennis Bastas from the pharmaceutical industry. Here is everything you need to know about the acquisition of Sukin by PNB Consolidated. It will help you understand how the deal was closed and how this feat was achieved to prepare you for buying businesses for sale Brisbane.

The Journey of Popular Skincare Brand Sukin

The popular brand Sukin was established in 2007 to offer sustainable personal care products. The business was involved in manufacturing Australia-made vegan goods comprising natural ingredients. The unique selling proposition of the brand is that the products are cruelty-free and come in recyclable packaging. Headquartered in Clayton, Victoria, the business created a purpose-built factory in Melbourne. The business offers a wide range of skin, hair and body care products, which are distributed through pharmacies in Australia.

The popularity of the natural products made it a household name in the country. The natural products started grossing astounding numbers and began exports to countries like the USA, UK, Canada, New Zealand, Hong Kong, Singapore, etc. In 2015, it was acquired by BWX Limited, which was involved in the product development of Sukin since its inception. During this acquisition, the business retained its management, which included its co-founders Alison Goodger and Simon O’Connor.

BWX Limited acquired Sukin along with its brands – Derma Sukin and Renew Skincare to leverage the market share. Since BWX was selling personal care products, the acquisition increased its capabilities and growth rate. Entrepreneurs who wish to buy a business for sale Brisbane should read about the different acquisition stories to build a solid entity that can survive for the long term.

The Speedy Rise of BWX Limited

BWX Limited began as a Leisure and Hospitality Service (LHS) in 1993. Since its establishment, the company has been developing beauty and personal care products for third-party clients. In 2001, Beautiworx was established to cater to other clients. Later, in 2007, LHS started developing proprietary formulations for Sukin. Soon, Sukin created a furore in the market with its natural products, which were being sold in ten countries.

In 2013, BWX Limited came into existence and started a facility in Dandenong South. In just two years of its establishment, BWX took the significant step of acquiring Sukin, and in the same year, it got listed on the Australian Securities Exchange Ltd. The next year proved beneficial for BWX as Sukin became the top-ranking natural skincare product in the pharmacy. It is vital to purchase complimentary businesses for sale in Brisbane when looking for acquisitions to maintain brand consistency.

By 2016, the company was leaving no stone unturned in growing further and raising capital. It acquired US-based Mineral Fusion, a mineral-based cosmetics company. In the same year, it acquired Nourished Life, an Australian e-commerce beauty and wellness brand. In addition, BWX took over Andalou Naturals, an American skincare brand, to dive deeper into the international market.

The Shocking Collapse of BWX Limited

BWX became a force to reckon with after the launch of Nourished Ventures and the construction of its manufacturing facility in 2020. The next year, it purchased another e-commerce business, Flora & Fauna and a 50% stake in Go-To Skincare. However, the fast-paced growth of BWX came to a halt with the interest rate hikes by the Reserve Bank of Australia that led to the fall of the company. Entrepreneurs who wish to buy a business for sale in Brisbane must ensure that their acquisitions do not lead to cash flow problems like BWX.

The company struggled with various financial challenges because of softening demand and overstocking problems. It incurred a staggering loss of $351 million in 2022. The company collapsed in 2023 after its bank pulled out its support. BWX announced that they had entered voluntary administration. The company owes $105 million to the Commonwealth Bank. The day-to-day operations of the company were placed under the control of KPMG.

Sukin Gets Saved by John Humble

In January 2024, KPMG announced that Sukin has been bought by PNB Consolidated, which is primarily owned by the former CEO of BWX, Mr. John Humble. They have also acquired the manufacturing facility of the skincare brand located in Melbourne. Mr. Humble had been looking for this opportunity for a long time, as he had tried to take control of Sukin earlier as well.

He had planned an $860 million buyout of the skincare brand from BWX in 2018 with the help of Bain Capital. However, the deal could not get a green signal, and Mr. Humble left BWX. PNB Consolidated has showcased strength in manufacturing and distributing health and wellness products. Under the leadership of Mr. Humble, PNB will take Sukin back to its popularity.

The deal was completed with the help of BWX team members and other participants who supported the receivership process. BWX has also sold back its 50% stake in Go-To to its co-founders. In addition, Flora & Fauna and Nourished Life have also been bought by Julie Mathers and HealthPost, a New Zealand-based e-commerce platform.

Sukin is a high-potential brand with excellent distribution across countries and has been a staple in pharmacies and grocery stores in Australia. The manufacturing facility that has been sold along with the business can produce 70 million units of its four product lines. Entrepreneurs looking for businesses for sale in Brisbane must check the entity's capabilities to ensure success, like Mr. Humble.

Wrapping Up

One of the biggest sales was completed in the skincare category at the beginning of this year, marking the popularity of sustainable and natural cosmetics. It also showcases the high growth of this beauty segment, which will continue to break records in the future.