Eleven acquires Nordicfeel, becomes one of the largest online beauty companies in the Nordics.
The deal is made in cash and shares in a newly founded company and has the financial details undisclosed.
The new joint venture will manage the development of e-commerce platform, logistics and marketing in order to create a common warehouse that manages the logistics for both brands. CEO of the merged company becomes Pernilla Barkman, CEO of Eleven.
Following the deal, Nordicfeel's investors will become minority shareholders in the new company, which is expected to have sales of SEK 370M ($43M) and provide over 40,000 different products in three Nordic markets.
Eleven is a Swedish online beauty retailer founded in 2004 by Michael Gegerfeldt and led by CEO Pernilla Barkman, and which provides 30,000 products in makeup, skincare, fragrances, and haircare. The company merged with Parelle in 2013 in a deal supported by existing investors, Verdane and eEquity. Eleven registered SEK 128M ($14.5M) in sales in the 2016 fiscal year.
NordicFeel, founded in 2006 and headed by chairman Jörgen Bödmar, is one of the largest online beauty stores in the Nordic countries. The company operates in Sweden, Norway, Denmark and Finland with the headquarter located in Växjö, in the south of Sweden. NordicFeel registered SEK 217M ($25M) in the 2016 fiscal year.