Australian ecommerce pioneers Catch Group and Lux Group — formerly Catch of the Day and Aussie Commerce — have completed a series of strategic transactions that will re-focus both businesses.
The two companies — which have a combined estimated turnover of over $600 million — have swapped ownership of assets and are equal partners in a new joint venture.
The deal will give the two businesses greater scale, which they’ll need as Amazon ramps up competition in Australia.
Lux Group will become a pure travel business, acquiring Catch Group’s travel businesses, which include BonVoyage and Scoopon Travel, which will sit alongside its existing business Luxury Escapes.
Catch Group will become a pure-play ecommerce business, acquiring Lux Group’s Brands Exclusive and TheHome, which will complement Catch.com.au, GroceryRun, Mumgo and Pumpkin Patch.
The two companies have also established a joint venture called Lux Everyday that will combine the daily deals businesses owned by Catch and Lux. With 50/50 ownership, the JV combines Scoopon, Cudo, LivingSocial, Deals.com.au and New Zealand-based TreatMe.
As part of the transactions, Catch Group founders, Gabby and Hezi Leibovich, will become 20 per cent shareholders in the Lux Group, which was founded by Adam Schwab and Jeremy Same.
“This deal makes a lot of sense for the Catch Group,” Catch Group co-founder Gabby Leibovich said.
“Our strength is in sourcing products and we have mastered the logistics of ecommerce. We are excited to be able to offer our products and expertise to over a million new customers of BrandsExclusive, TheHome, Cudo and LivingSocial.”
“With Catch Group’s travel brands on track to turn over more than $50 million this year, and product brands at Lux Group heading towards $60 million in turnover, we are very excited to partner with Lux and to be able to build on our respective strengths together to continue to grow and dominate Australia’s ecommerce landscape,” Leibovich said.
Lux Group Managing Director Adam Schwab described the deal as “transformative.”
“This transformative transaction will allow Lux Group to establish a focussed and scaled travel ecommerce business with over A$300m of pro forma turnover as we continue to deliver the world’s very best travel packages to consumers across Australia, New Zealand and South East Asia,” said Schwab.
“We are also excited to welcome Gabby and Hezi as new shareholders in Lux Group, and look forward to working productively together as we drive growth through our newly formed Local business which brings together iconic Australian ecommerce brands like Scoopon, Cudo and Living Social.”