- 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.
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