Oroton buys chunk of burgeoning accessories brand

The Daily EditedLuxury fashion retailer, Oroton, has purchased 30 per cent of fast growing online lifestyle accessories business The Daily Edited (TDE) for $4.5 million.

The deal is made up of cash and group shares with Oroton expecting the investment to be immediately accretive with double-digit EPS accretion forecast for FY18 .

Oroton said the investment is in line with its strategy of enhanced multi-channel diversification. It’s also part of a play to accelerate the group’s online offering and complement its existing sales channels, by gaining access to TDE’s younger market segment and dedicated customer base.

“The TDE brand, management team and online presence will provide Oroton Group 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,” said John Schmoll, chairman, Oroton Group.

TDE’s founders and current shareholders, Alyce Tran and Tania Liu, will continue to operate the business and said the deal signals the brands transition from an “emerging retail business to an established fashion brand and recognised destination for customised accessories.”

“We are excited by the opportunity to partner with OrotonGroup and learn from and leverage its proven retail and back office capabilities and network and together grow both companies to leading positions in the industry,” said the co-founders.

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