Amazon sold itself for 13 million, and all old employees may be fired

Although there seems to be less news about Amazon store acquisitions recently than in the past two years, there are still some high-quality sellers who are favored by capital and finally sell their stores after some "bargaining".

Recently, the famous brand Jeff's Brands announced that it has reached an agreement with Amazon's best-selling Fort Products Ltd. to acquire all of its shares.

According to the agreement, Jeff's Brands will acquire all outstanding shares of Fort for 1.6 million pounds (approximately RMB 13 million).

It is understood that Fort is a company registered in England, which mainly sells pest control products through the Amazon platform. It has now become the top seller in this category.

Fort currently operates five sub-brands and ranks highly in multiple subcategories of pest control products. Data shows that as of July 2022, Fort's market share in related categories on the Amazon platform is approximately between 26.5% and 35.7%, and its total revenue last year reached 4.8 million pounds (equivalent to nearly 40 million yuan).

In addition, Fort's products have accumulated more than 55,000 reviews, 82% of which have a rating of four stars or above.

According to the agreement, all employees of the original company will be laid off within three months after the acquisition is completed. During this period, Jeff's Brands will also make a series of operational adjustments and reduce the number of self-rented warehouses, transferring related inventory to Amazon warehouses.

In addition, the agreement also states that the seller needs to provide consulting services for three months after the completion of the acquisition, during which time he can receive a consulting fee of 2,500 pounds per month, and the seller also needs to promise not to engage in the related industry within three years.

According to ResearchDive, the global pest control products market size was approximately $3.2098 billion in 2020 and is expected to grow at a compound annual growth rate of 4.9% from now to 2028 to reach $4.6597 billion.

Viki Hakmon, CEO of Jeff's Brands, said: "After completing the acquisition, we will continue to increase investment to make these brands stronger. In the future, we will also expand the category and carry out multi-channel layout. I believe there is still great potential for the development of this category in the future."

Once upon a time, being acquired by capital became the dream of many sellers, achieving financial freedom while no longer having to worry about the daily trivialities of the store.

However, there are still many sellers who are still sticking to their original intentions, hoping to improve their stores step by step and eventually develop into well-known brands. In fact, no matter what the ultimate goal is, the first thing to do is to polish the product so that greater development can be achieved in the future.

Amazon

Acquisition