The UK company had Approximately $6 Million Revenues in 2021 and purchase price expected to be approximately $2.5 million
Tel Aviv, Israel, Nov. 23, 2022 (GLOBE NEWSWIRE) -- Jeffs' Brands Ltd (“Jeffs’ Brands” or the “Company”) (Nasdaq: JFBR), a data-driven e-commerce company operating on the Amazon Marketplace, today announced that it has entered into a non-binding term sheet (the “Term Sheet") with a company incorporated in England engaged in the sale of pest control products through Amazon.uk ("the UK Company").
As contemplated by the Term Sheet, Jeffs' Brands will acquire the UK Company and its five private label brands, currently being sold on Amazon.uk, for approximately $2.5 million in cash.
The UK Company is a market leader in pest control products sold on Amazon.uk in several market niches – one brand is showing its dominance over the “moth trap and rat trap” market niche on Amazon.uk with a market share of 35.7% and 26.5%, respectively, as of July 2022. The UK Company generated approximately $6.2 million in revenues in 2021 with gross profit margins of 21% (un-audited results). Currently the UK Company’s brands and products have over 55,000 reviews, 82% of which are 4- and 5-star reviews.
According to ResearchDive, the global rodent control market accounted for approximately $3,209.8 million in 2020 and is predicted to grow with a CAGR of 4.9%, by generating revenues of approximately $4,659.7 million by 2028. Also according to ResearchDive, the products sub-type is anticipated to have a dominant market share and generate a revenue of approximately $2,796.8 million by 2028, growing from approximately $1,878.6 million in 2020.
"We continue targeting leading companies and brands, operating in attractive sectors, that we believe have great potential. Currently, the UK Company focuses its marketing and sales on Amazon.uk, and it is our intention to expand the brands' reach by launching its products in new territories and platforms," said Viki Hakmon, Chief Executive Officer of the Company.
The acquisition is subject to, among other matters, a due diligence review by Jeffs' Brands and the negotiation and execution of a binding definitive agreement. There can be no assurances that any component of the acquisition will proceed, nor can there be any assurance as to the final definitive terms thereof.
About Jeffs’ Brands Ltd
Jeffs' Brands is transforming the world of e-commerce by creating and acquiring products and turning them into market leaders, tapping into vast, unrealized growth potential. Through our stellar team’s insight into the FBA Amazon business model, we’re using both human capability and advanced technology to take products to the next level. For more information on Jeffs’ Brands Ltd visit https://jeffsbrands.com.
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