OTO has acquired South West Brands’ (SWB) wellness portfolio for £7m and merged the two businesses to create global consumer packaged goods company OTO Group.
The company will build on “the rapid success of both entities”, creating a portfolio of global, female-focused wellness brands that are focused on innovation.
Luxury wellness brand OTO, which is known for its CBD products, acquired menstrual and perimenopausal wellness brand FEWE, skin care range Love MeMeMe and CBD-infused soft drink company Botanic Lab in the deal.
“The consumer need for wellbeing and self care products is on the rise, with the global wellness market already worth trillions, and [it is] still growing at a 5.5% CAGR,” said James Bagley, CEO of OTO Group.
“The market is at an inflection point, as early players and sub-standard products make way for leading brands and lifestyle propositions that are thoughtful, effective and set to drive explosive growth.”
OTO Group has also secured additional funding to accelerate its growth ahead of a potential public listing.
The move is the first step in the group’s “build and buy” strategy, where it will rapidly grow its portfolio of wellness-focused brands.
Gemma Colao, founder of OTO, and Rebekah Hall, founder of SWB
The business has a target of achieving around £15m to £25m full-year sales in 2024, as well as an EBITDA of around £3m to £4m.
It has created a platform for R&D and innovation that ensures “continued organic growth and the strategic backbone and infrastructure for future acquisitions” in the UK and US.
“It has been my dream to expand the OTO offering for some time,” said Gemma Colao, founder of OTO.
“The opportunity to work closely with SWB’s inimitable founder Rebekah Hall to further our mission of building a powerhouse brand for women, by women, is incredibly exciting.”
Hall, founder of SWB, commented: “Women’s health and wellbeing has long been underserved in the consumer goods industry.
“The enlarged OTO Group will undoubtedly be an exciting and dominant force in the wellness industry.”
The combined group has sold around 500,000 units to date since 2019.
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