Live Verdure up 33% on buyout of skincare competitor; former L’Oréal man new CEO

Live Verdure (ASX:LV1) shareholders are confident in the company’s plans heading into 2023 as shares have risen over 30% today to 20c on the back of a new acquisition. 

Live Verdure has paid $1m upfront (three quarters cash, the remainder in shares) for the acquisition of Edible Beauty, a naturopath web retailer selling health and wellness products. 

Edible Beauty also has a healthy skincare product base, which represents a new portfolio opportunity for Live Verdure. 

Edible Beauty made $2.2m revenue through FY22 with 74% of that revenue based on subscription-model customers mainly in Australia and New Zealand. 

Live Verdure perceives the acquisition of Edible Beauty will allow it to boost its exposure to subscription based revenues, overall product range, and new product development. 

Edible Beauty founder Anna Mitsios will join the executive team at Live Verdure, becoming General Manager of the EB brand upon completion of the acquisition. 

New CEO from L’Oréal

While difficult to ascertain without directly surveying all buyers of the stock today, it is almost certain the appointment of new CEO Mark Tucker is also part of today’s share price rise. 

The big takeaway: Tucker is L’Oréal’s former Managing Director. 

Live Verdure notes under Tucker’s direction, the revenue grew from $12m to $400m at L’Oréal.

“This is a brilliant opportunity to acquire an established skincare and wellness brand to grow revenue,” Live Verdure’s new CEO Mark Tucker said.

“Live Verdure’s resources will be applied to Edible Beauty to gain economies of scale and reduce overheads.” 

Tucker’s expertise from L’Oréal is also set to put Live Verdure in good stead as it now takes on board Edible Beauty’s skincare portfolio. Live Verdure has typically made hemp-based health food products in the past, with one notable example being its 13 Seeds supplementary range. 

Capital raise to fund deal 

LiveVerdure has received firm commitments for over $2m in its latest shaking of the tin, something which was well needed, given that the company only had $0.53m at the end of June. 

These funds will go towards the $1m given to Edible Beauty, as well as ongoing costs associated with its growth strategy.

The completion of the EB acquisition is set to conclude by October 2022 upon the satisfaction of all conditions, but its obvious market sentiment is confident in the board’s ability to get the deal over the line. 

The addition of Mark Tucker to the team is sure to add weight to this belief. 

A look at the company's one year charts. Is this the start of a new era for Live Verdure?