Celebrity Slim shake hopeful fronts funds ahead of mooted IPO

IF YOU ARE INTERESTED IN INVESTING IN THIS PROJECT PLEASE CONTACT THE ROBB GROUP.

Publication: The Australian Financial Review
Author: Sarah Thompson and Anthony Macdonald

A company chaired by former Trade and Investment Minister Andrew Robb is seeking an equity injection so it can buy weight loss shakes maker Celebrity Slim and list on the ASX-boards.

Street Talk understands Global Brands Australia, which is chaired by Robb and run by former hospitality training centre William Angliss Institute boss Bryan McGoldrick, is asking fund managers to back a pre-initial public offering raising to help get the company established and set it on course for a sharemarket float.

The strategy, according to a pitch deck seen by Street Talk, is to acquire Celebrity Slim from ASX-listed pharmaceuticals brand owner Probiotec Ltd and also Aurora Spa, which runs a handful of spas including in the Qantas First Lounges in Sydney and Melbourne.

First it is seeking to raise $7.5 million for the Celebrity Slim acquisition and has told fundies it wants to be back raising another $5 million for its IPO in September.

The company told potential investors that it had already secured debt from Commonwealth Bank of Australia to help cover part of the Celebrity Slim acquisition.

And should it hit the ASX-boards as planned, GBA reckons it'll embark on a roll-up strategy and own a suite of health and beauty and spa brands with "significant upside for growth".

China is a big part of the pitch - and is where investors will expect Robb to play a role. Robb helped negotiate free trade agreements with countries including China during his time in government.

Potential investors were told Trade Australia Group had already ordered Celebrity Slim for China, pending GBA's acquisition, while GBA would also consider potential joint venture partners in China.

GBA expects $19.7 million sales in the 2020 financial year and $5.6 million EBITDA.

The $7.5 million raising would value the company at $13.6 million on an enterprise value basis.

Source: https://www.afr.com/street-talk/celebrity-slim-shake-hopeful-fronts-funds-ahead-of-mooted-ipo-20190715-p5278k

Joe Robb