OTO acquires South West Brands, creates lifestyle brand group

Wellness retailer OTO has announced the acquisition of South West Brands (SWB), resulting in the formation of the new OTO International, a UK-based group for consumer packaged goods and lifestyle brands largely for CBD-infused products.

The acquisition comes as the first step of the group’s ‘build and buy’ strategy, in a seven million pound deal which included consumer brands Fewe, a female wellness retailer, and Love MeMeMe, a Gen Z beauty label.

With the takeover, OTO said its group sales growth is now expected to increase between 80 and 150 percent, in the range of four to six million pounds. It also said its “significant operating synergies” could deliver break-even position within the first 12 months and a 15 to 25 percent positive EBITDA in FY24.

OTO noted that it had secured additional funding and would continue to raise in order to further growth and achieve scale ahead of its potential public listing and B Corp status.

In a release, Gemma Colao, founder of OTO, said: "I have always been passionate about creating products and building brands that people feel inspired by - as a creative and designer, it's my heartland.

“The opportunity to work with SWB's inimitable founder, Rebekah Hall to further our mission of building a powerhouse brand for women, by women is incredibly exciting."

SWB’s Hall added that the acquisition would allow the group to further its mission of building a portfolio of “global female-focused wellness brands” as the duo combine their shared vision and ethos.

Colao will take on the position of chief brand officer in OTO International, while Hall will serve as chief growth officer. James Bagley, co-founder of OTO, will assume the CEO position.