E-commerce aggregator Society Brands has acquired Primal Life Organics, an e-tailer of "clean" beauty products near Akron, Ohio, for undisclosed terms.
It's Society Brands' second acquisition in three months after a yearlong pause caused by rising interest rates, which tend to push down valuation multiples for businesses that are being acquired.
Falling valuations might create bargains for some acquirers, but not for Society Brands.
"There were willing sellers at attractive [valuation] multiples," Justin Sirpilla, Society Brands co-founder and president, told attendees at the grand opening of his company's new headquarters at Hall of Fame Village in Canton, Ohio, in early December.
But the top e-commerce companies that Society Brands wants to acquire were "nowhere to be found" from fall 2022 through much of 2023, said Sirpilla, who is the brother of the company's co-founder and CEO, Michael Sirpilla. Instead, these founders "were on the sidelines waiting for multiples to rise," Justin Sirpilla said.
So the Sirpilla brothers and their team came up with a creative way to get founders of the best e-tailers to say "yes" to being acquired — they offer to acquire a percentage of the e-tailers now when valuations are lower and then complete the acquisitions over years as valuations rise.
This acquisition strategy appears to be working.
In late October, Society Brands announced the acquisition of energy drink e-tailer Club EarlyBird — the aggregator's first acquisition since September 2022 — and the acquisition of Primal Life Organics on Wednesday.
Trina Felber, a registered nurse and best-selling author, and her husband, Josh Felber, started Primal Life Organics in 2008. The Felbers seek to "revolutionize the personal care industry" by formulating plant-based skin care and natural dental care products that eliminate harmful toxins and nourish the body as well as use natural ingredients and biodegradable packaging.
"This strategic partnership marks a significant milestone and will undoubtedly propel my mission to new heights ... globally," Trina Felber said in a statement.
The Primal Life partnership also aligns with Society Brands' strategy to acquire exceptional brands that have visionary leaders and loyal consumer bases. Among Primal Life Organics' advisors is Daymond John, an investor on the reality television show "Shark Tank" and CEO and founder of the Shark Group, a brand management and consulting firm, Society Brands said.
Society Brands intends to expand Primal Life's direct-to-consumer efforts, where a vast majority of the brand's sales reside, and to work with the Felbers to expand their retail presence, the aggregator said.
Primal Life employs more than 20 people at its Copley Township location.
