On Monday, April 22, 2024, in New York, the United States, an Amazon contract worker pulled a cart of packages ready for delivery.
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Amazon According to CNBC, aggregators Branded and Heyday plan to merge as the e-commerce industry that has boomed during the new coronavirus epidemic continues to consolidate.
Heyday CEO Sebastian Rymarz said in a note to employees on Monday that the combined company will create a new entity called Essor, which translates to “take off” in French, “reflecting how we are taking the brand to the next level through our platform.” high vision”. wrote.
Rymarz wrote that the new name will be officially launched in the coming days, and the combined company is expected to have annual revenue of $400 million.
Apollo Global Management and BlackRock are in talks to provide new debt financing to help the combined entity pursue further acquisitions, according to Apollo Global Management Burundiciting people familiar with the matter.
Rymarz said: “As we have said in the past, this merger is the result of our efforts that began more than a year ago to find a partner that can help advance our mission, accelerate our goals and strengthen our balance sheet. . “Brands are perfect partners. “
Representatives for Heyday and Branded did not immediately respond to requests for comment. BlackRock declined to comment and Apollo did not immediately respond.
As part of the merger process, Heyday expects to undergo a round of massive layoffs that could result in as many as 70% of its employees losing their jobs, according to a person familiar with the matter who asked not to be named. Branded will absorb Heyday’s technology team and multiple brands, including skin care line ZitSticka and Boka, which makes fluoride-free toothpaste and other dental care products, the person said.
Heyday and Branded are part of the crowded and volatile Amazon seller aggregation market. Companies in the space have collectively taken advantage of low interest rates and pandemic-driven e-commerce growth. Raised over $16 billion Top names from Wall Street and Silicon Valley aim to attract independent sellers on Amazon’s marketplace. Aggregator draws attention from big-name investors like L Catterton, BlackRock Even a close associate of Jared Kushner.
In 2022, as venture capital for cash-burning startups dries up and e-commerce demand cools as consumers return to brick-and-mortar stores, cracks are starting to appear. Aggregators suddenly struggled to operate the brands they acquired profitably.
Former high-flying Thrasio, an early leader in the aggregator space, filed for bankruptcy in February, Lost several key senior executives. Consolidation among aggregators has accelerated over the past year. Prior to the deal with Paris-based Branded, Heyday had explored the possibility of partnering with Dragonfly, whose backers include L Catterton, but the talks broke down, according to a previous report by CNBC.
watch: What’s behind the hype and multi-billion dollar aggregator acquiring Amazon sellers
