• Emerge (ECOM) has signed a definitive agreement to sell BattlBox for US$7.2 million
  • BattlBox is an e-commerce subscription business for survival and outdoor gear
  • Battlbrands Holdings will pay US$6,008,666 on closing and assume US$1,161,537 in liabilities
  • Emerge will allocate the majority of the proceeds to debt paydown
  • CEO Ghassan Halazon spoke with Brieanna McCutcheon about the sale
  • Emerge is a diversified acquirer and operator of profitable niche e-commerce brands across North America
  • Emerge Commerce (ECOM) last traded at $0.09 per share

Emerge (ECOM) has signed a definitive agreement to sell BattlBox for US$7.2 million.

BattlBox is an e-commerce subscription business for survival and outdoor gear.

Consideration includes US$6,008,666 on closing and the assumption of US$1,161,537 in liabilities.

Emerge will allocate the majority of the proceeds to debt paydown. It now plans to reduce debt to C$15 million by Q3, down from C$25 million a year ago and its previously stated target of C$19 million. The company expects $1 million in annual interest savings, exceeding free cash flow generated from BattlBox in 2022.

Emerge executed the sale to focus on asset-light businesses with strong EBITDA-to-cash flow conversion, as well as ‘recession-resilient’ verticals such as pets, grocery, golf and discounted experiences.

Carnivore Club – an artisanal meat subscription from the original BattlBox acquisition – will remain an Emerge brand.

The agreement is between Emerge US Holdings and Battlbox, a direct and indirect subsidiary of the company, respectively, and Battlbrands Holdings.

Closing is expected by April 21, 2023.

Emerge’s go-forward e-commerce portfolio is expected to approach C$100 million in annual gross merchandise sales and remain profitable on an adjusted EBITDA basis.

CEO Ghassan Halazon spoke with Brieanna McCutcheon about the sale.

Emerge is a diversified acquirer and operator of profitable niche e-commerce brands across North America. It focuses on pet products, meat and grocery, golf and discounted experiences, among other categories.

Emerge Commerce (ECOM) last traded at $0.09 per share.

This is sponsored content, please see full disclaimer here.


More From The Market Online
Smoothies and food items in a colorful collage.

Happy Belly Food Group’s new restaurant boosts budding growth story

Happy Belly Food Group (CSE:HBFG) will open its newest Heal Wellness restaurant Saturday in Sherwood Park, Alberta.
A toddler drinking a nutritional beverage.

Else Nutrition adds another major customer: Why to invest today

Else Nutrition (TSX:BABY) is now offering its products through the Navy Exchange, a retail chain owned by the United States Navy.
Jones Soda

Jones Soda launches new colas co-branded with Nitrocross motorsports

Jones Soda (CSE:JSDA) announces the upcoming launch of new formulas, Jones Craft Cola and Jones Craft Zero Cola, co-branded with Nitrocross.