Online baby and maternal products company BebeStore announced last week that it had completed an agreement to acquire Baby – its former rival. While financial terms of the cash transaction were not disclosed, the New York Times reported that the deal is believed to be very large.
Baby generated 32 million reais (about $15 million) in revenue in 2013, BebeStore’s co-founder and chief executive Leonardo Simão told the news source. Simão added that Baby is expected to take in 45 million reais in revenue this year.
BebeStore also had a decent 2013, as it took in 48 million reais in revenue last year, and expects to generate 110 million reais in 2014.
BebeStore is backed by the London-based venture capital firm Atomico, Simão explained, adding that the local investment firm W7 Brazil Capital will acquire Baby’s assets. According to Simão, the assets include Baby’s brand, customers and inventory stock. However, BebeStore will will not add any of Baby’s employees.
Currently, BebeStore is not profitable, but Simão believes the acquisition will let the business become profitable by this December, instead of in April 2015.
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