South West Brands acquired by OTO to form new company
Luxury wellness brand OTO has acquired UK-based CPG business South West Brands for £7 million to create a global portfolio of female-founded wellness brands. The two companies are joining forces to create the newly formed OTO Group, building on the "the rapid success of both entities".
The acquisition marks the first step of a ‘build and buy’ strategy and accelerates the group’s mission to "build the wellness brands of the future".
The new company will be led by OTO Co-founders Gemma Colao and James Henry Bagley as Chief Brand Officer and CEO, respectively. Rebekah Hall, the Founder of South West Brands, has been named as Chief Growth Officer.
The combined management team hopes to harness their collective expertise and experience to accelerate the growth of OTO alongside South West Brands’ portfolio, including FEWE, Love MeMeMe and Botanic Lab.
Alongside the acquisition, OTO has secured additional funding and will continue to raise to accelerate growth ahead of a potential public listing. The business has a target of achieving around £15-25 million full-year sales in 2024, as well as an EBITDA of around £3-4 million.
Gemma Colao, Co-founder of OTO, said: "I have always been fiercely passionate about creating products and building brands that people feel inspired by - as a creative and designer, it’s my heartland.
"It’s been my dream to expand the OTO offering for some time, and the opportunity to work closely with South West Brands' inimitable founder, Rebekah Hall to further our mission of building a powerhouse brand for women, by women is incredibly exciting. We’re only just getting started.”
Rebekah Hall, Founder of South West Brands, said: “The acquisition provides huge acceleration in our mission to build a portfolio of global female focused wellness brands that serve our customers at the cutting edge of innovation.
"Women’s health and wellbeing has long been underserved in the consumer goods industry. In OTO, a fellow female founded and focused business, we have found a shared vision, ethos and drive. The enlarged OTO Group will undoubtedly be an exciting and dominant force in the wellness industry.”