Functional drinks brand Nexba is set to be taken over by the consumer arm of Indian conglomerate Reliance Industries in a A$32m (£16m) deal, The Grocer has learned.
Reliance Consumer Products has agreed to invest A$25.4m (£12.7m) in Nexba’s Australian parent company Goodness Global in return for a 75% stake, according to documents sent to crowdfunding shareholders.
Nexba told its backers the acquisition by the fmcg division of India’s largest company, which valued the business at A$32m, was a milestone moment.
“This partnership is designed to provide more than just capital; it gives Nexba direct access to global retail and manufacturing infrastructure, which the board believes is essential for the next phase of the company’s growth and eventual liquidity,” the message to shareholders said.
Brothers-in-law Drew Bilbe and Troy Douglas started Nexba as a sugar-free drinks business in Australia in 2010.
Nexba entered the UK market with a launch in Sainsbury’s in 2018. Today it supplies Tesco, Morrisons, Waitrose, Booths, Ocado and Amazon with one-litre bottles of kombucha. It also sells kefir water and soda.
The wider Goodness Group also owns several other functional drinks brands, including The Good Sorts, Remixt and Pace, a zero-sugar “rapid hydration drink” created in partnership with Australian cricket captain Pat Cummins.
Goodness Group has scaled up thanks to millions of dollars in funding, including a crowd round in the UK on Crowdcube in 2024.
Crowd investors were asked to vote on the proposed sale to Reliance by 12 noon yesterday (13 January).
The valuation of the deal implied a price of $0.08 a share, way down on the £0.46 price at which the UK crowd round was pitched.
The move, if the sale goes ahead, would give Reliance a 75% majority stake in Goodness Group and significantly dilute existing shareholders.
“The founders believe this transaction is a major milestone for the business and presents an unprecedented opportunity for future valuation growth that would simply not be possible without the backing of such a significant and aligned strategic partner,” the message to shareholders added.
“The board views this as a transformative deal. While it involves significant dilution and a change in holding structure, it secures the company’s financial future, pays down debt, and provides a strategic path to a larger exit in the future.”
Reliance is also proposing to simplify the share register of the business. As a result, Goodness Group is restructuring all existing shareholders, including Crowdcube backers, into a single unit trust.
As part of this restructure, shareholders who no longer want to remain as investors will have an option to sell their interest to Reliance Consumer Products at the same share price as the new investment.
The majority of Goodness Group’s revenues are generated in Australia, with the rest coming from international markets in the UK and wider Europe.
Group sales had declined to A$25.5m in the year to 30 June 2023, with losses growing to $7.8m, according to documents provided alongside the 2024 crowd pitch.
Reliance is one of the world’s biggest companies and has a market cap of more than US$220bn. It’s consumer arm owns the likes of Campa Cola and sweets brand Ravalgaon.
Goodness Group declined to comment and The Grocer has yet to hear from Reliance Consumer Products.
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