Deloitte lights up auction for candle-maker ECOYA

Deloitte lights up auction for candle-maker ECOYA

The business was pitched forecast $23 million net revenue for the 2023 financial year, and about $4 million in normalised EBITDA.

Such numbers would represent 20 per cent compound annual growth at the revenue line and 92 per cent in terms of EBITDA, based on the three years to June 30 next year.

Deloitte was reminding potential backers that ECOYA had a strong brand presence in the Asia Pacific market where home fragrance sales are forecast to reach US$2.7 billion and scented candle sales to $US1 billion by 2026.

The business is expected to attract interest from Australian and offshore private equity firms, particularly those with experience in retail and consumer goods, and branded goods companies with deep pockets for a bolt-on acquisition.

ECOYA was founded by Craig Schweighoffer in 2006, who had previously worked as the managing director vodka brand 42 Below, which was bought by Bacardi that year.

It listed on the New Zealand Stock Exchange in 2010 after a $NZ10.1 million initial public offering, which included Schweighoffer’s old 42 Below colleagues taking up a shareholding. During its listed life, ECOYA bought (and the even changed its ticker to) Trilogy and eventually also landed onthe ASX.

In 2018, CITIC Capital bought the Trilogy Group, which included the Trilogy, ECOYA, Goodness, Lanocreme and By Nature brands. The acquisition was from CITIC Capital China Partners III, a buyout fund which paid $NZ250 million.

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