LANGHORNE, PA — NEXGEL, Inc. (NASDAQ: NXGL), announced this week its acquisition of Silly George, an international beauty company known for its innovative eye and eyelash products. The deal, valued at $400,000 in cash and $200,000 in NEXGEL common stock, along with a 4-year net profit earn out, aims to enhance NEXGEL’s portfolio and operational efficiency, while promising to add approximately $2 million in annualized revenue.
Silly George has carved out a niche in the beauty industry with its full line of eye and eyelash products, including non-toxic, long-wear Pop-On Lashes that last between five to ten days, offering a safer alternative to traditional glue-on eyelashes. The company sells directly to consumers and on Amazon in major markets like the United States, United Kingdom, Australia, and the Netherlands.
Adam Levy, CEO of NEXGEL, emphasized the strategic importance of the acquisition, stating, “Silly George will add approximately $2 million in annualized revenue and represents another step forward in achieving the critical mass and cash flow necessary to reach our goal of profitability.” He highlighted the expected synergies between the companies, including marketing optimization and expense overlap, which are anticipated to drive operating margin expansion. Levy also pointed to Silly George’s substantial social media presence and consumer database as key assets for cross-selling opportunities.
Miranda Semmens, CEO of Silly George, expressed confidence in the acquisition, noting NEXGEL’s commitment to skin integrity and overall skincare as complementary to her company’s focus on high-quality beauty products. “Given its strong record of bringing innovative health and beauty products to the forefront of the consumer healthcare industry, we believe NEXGEL is the right partner to bring our business forward in the next stage of our growth,” Semmens said.
The terms of the acquisition include the retention of Silly George’s management team and an arrangement for inventory to be provided by the seller at cost, paid for after each unit’s sale, ensuring a smooth transition and continuity for the brand.
This acquisition not only highlights NEXGEL’s aggressive expansion strategy in the consumer health and beauty space but also underlines the increasing value of innovative, consumer-friendly products in the industry. By incorporating Silly George into its portfolio, NEXGEL is poised to make significant strides toward profitability and market dominance, leveraging operational synergies and tapping into Silly George’s loyal customer base and digital footprint for future growth.
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