Oroton buys stake in custom accessories brand The Daily Edited
Oroton Group said on Monday it has invested AU$4.5 million (US$3.43 million) in custom accessories brand The Daily Edited, equating to a 30% stake in the Australian fashion newcomer.
Oroton's deal with TDE -- a direct-to-consumer retailer and maker of personalised leather goods and accessories for younger men and women -- is comprised of a combination of cash and Oroton Group shares. The partnership allows Oroton to raise its interest in TDE to a majority stake in future, said Oroton Group, in a press release.
It hopes the stake will provide Oroton with the ability to accelerate the group’s online offering while complementing its existing sales channels. Oroton said it will expect immediate growth in shares as forecasting has indicated a double-digit EPS accretion for FY18.
"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 Oroton Group, in a press statement.
Founded by Alice Tran and Tania Liu in 2014, TDE started out in 2011 as a blog before gaining a cult following of fashionistas. This prompted the duo to release its range of personalised and monogrammed leather goods including bag, wallets, purses, diaries and phone cases, among other pieces.
It currently has 40,000 active users on it platform and 185,000 followers across its social media platforms.
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