Kitchen Warehouse buys two rivals to create trans-Tasman powerhouse
Kitchen Warehouse has acquired online kitchenware stores Everten Love to Cook and Kitchenware Australia, which serve customers in both Australia and New Zealand.
The 2 kitchenware stores fulfilled 25,000 orders per month at peak during the pandemic.
Everten Group founder said they decided to exit the business after developing an in-house solution named ‘Profit Peak’, that enabled the company to boost profitability to address a declining top line revenue.
The e-commerce solution is designed to optimise advertising and inventory management for e-commerce businesses, and the Everten Group seeks to develop this into a SaaS product after the sale of its kitchenware stores.
“The market has shifted where e-commerce businesses are no longer valued on a revenue multiple and now on an EBITDA multiple, so we had to reset our valuation expectations,” said Carla Penn-Kahn, MD at Everten Groups.
“We knew by resetting valuation expectations we would line up the right deal to allow us to focus on helping other e-commerce businesses boost profitability by deploying Profit Peak after we managed to see its value building and deploying it with our own stores.”
