Foster Blake sold Go-To stake for $89m. She’s bought it back for a fraction of that
Former Young Rich Lister Zoë Foster Blake has bought back the stake in her Go-To Skincare brand from failed BWX Group after a prolonged sale process, at a fraction of what she originally sold it for two years ago.
BWX, the ASX-listed beauty group backed by the Forrest family, collapsed in April owing the Commonwealth Bank about $105 million. It had purchased a controlling stake of 50.1 per cent in Go-To in 2021 for $89 million.
Zoë Foster Blake has a majority stake in Go-To Skincare after buying back half the business from BWX. Kristoffer Paulsen
In a deal reminiscent of Kerry Packer selling his Nine Network to Alan Bond in 1987 for $1 billion and repurchasing it for $250 million three years later, Ms Foster Blake and Go-To co-founder Paul Bates have bought back the stake for just $8.5 million.
The sale by BWX receivers KPMG of a 49.9 per cent stake in Go-To means control of the business returns to the original shareholders and founders.
Ms Foster Blake stumped up $8 million to buy shares, and Mr Bates purchased $500,000 worth of shares, according to documents lodged with the corporate regulator. The beauty entrepreneur is now the majority shareholder with a 59.68 per cent stake.
On July 31 this year, Ms Foster Blake snapped up 2011 shares in Go-To, which reduced the balance of BWX’s holding to 49.9 per cent, which was sold in this transaction.
Ms Foster Blake said she was excited to take back control of the company. “It is my joy and privilege to give both my full focus and attention [to Go-To],” she said.
Go-To will spend $4.5 million from its retained earnings and in tandem take on a $10 million loan, which will be used to buy out these shares. That erases the put-option liability that was hanging over BWX as part of the original deal struck in 2021. At the time, the put option was worth $59 million.
The total sum of $21.8 million in this sale to the founders will go towards repaying secured creditor CBA’s $100 million exposure to the collapsed BWX.
The deal with Ms Foster Blake, handled by Grant Samuel, came just weeks after The Australian Financial Review revealed that there were advanced talks under way with River Capital to buy the stake but that fell over.
BWX, which counts Sukin, Andalou Natural and Mineral Fusion as its key brands was placed into receivership in April, but Go-To has traded normally during the sale process and was not in administration or receivership. Ms Foster Blake has continued as chief creative officer at Go-To and a director of the company she founded in 2014.
“We are pleased to have executed the sale of the BWX stake in Go-To Skincare. This transaction returns control of the company to its founder whose deep and intimate understanding of Go-To will be of significant value to the brand’s future direction,” said KPMG Australia’s turnaround and restructuring services partner Gayle Dickerson.
The sale of Go-To follows the sale of Flora & Fauna and Nourished Life to New Zealand-based Health Post and founder of Flora & Fauna, Julie Saunders.
Greenhill & Co is selling the Sukin brand and manufacturing site in a separate sale process and several parties are submitting bids.
It is believed the final two bidders are Dennis Bastas, the billionaire businessman behind the country’s largest generic drug supplier, and Natural Beauty Care, whose largest shareholder, PNB Consolidated, is controlled by former BWX chief executive John Humble.
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