Australian marketplaces Catch and Lux do swapsie deal
In the same week that Amazon launch in Australia, Catch and Lux, two well established Australian marketplaces have joined forces to exchange assets in a deal to benefit both businesses in their respective areas of expertise allowing them to play to their strengths for the future.
Lux Group, which owns Luxury Escapes, are acquiring Catch Group’s luxury travel businesses, which include Bon Voyage and Scoopon Travel.
Catch Group’s acquisition of Lux Group’s designer brand product businesses, which include Brands Exclusive and TheHome, will sit alongside existing product platforms Catch.com.au, GroceryRun, Mumgo and Pumpkin Patch
Local experience joint venture
A merger of Catch Group and Lux Group’s local experience businesses into an independently operated joint venture, which will include businesses such as Scoopon, Cudo, LivingSocial, DEALS.com.au and New Zealand-based TreatMe. Both Lux Group and Catch Group will provide exclusive product and travel to the local experience joint venture, with 50/50 ownership.
Catch and Lux post deal businesses
Following the transactions, Lux Group will become a pure travel business, with a well-rounded offering headlined by market leader, Luxury Escapes, complemented by newly acquired Bon Voyage and Scoopon Travel.
Catch Group will become a pure-play ecommerce business focused on a diversified product range, combining the market leading Catch.com.au, with Brands Exclusive and TheHome.
As part of the transactions, Catch Group founders, Gabby and Hezi Leibovich, will become 20% 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. 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. This addition will strengthen our buying power and our brand in Australia, which means even better deals for Aussie consumers.
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.”
– Catch Group co-founder Gabby Leibovich
With a combined estimated turnover of over $600 million across the Catch and Lux businesses, the deal represents Australia’s largest home grown ecommerce transaction. It will enable both companies to operate with the brands that cater to their strengths and should offer Australian customers better choice and value.