Kitchen Warehouse has acquired online kitchenware stores Everten Love to Cook and Kitchenware Australia, which serve customers in both Australia and New Zealand.
The two kitchenware stores fulfilled 25,000 orders per month at peak during the pandemic.
Everten Group founder said they decided to exit the business after developing an in-house solution named Profit Peak that enabled the company to boost profitability to address a declining top line revenue.
The e-commerce solution is designed to optimise advertising and inventory management for e-commerce businesses, and the Everten Group seeks to develop this into a SaaS product after the sale of its kitchenware stores.
“The market has shifted where e-commerce businesses are no longer valued on a revenue multiple and now on an EBITDA multiple, so we had to reset our valuation expectations,” said Carla Penn-Kahn, MD at Everten Groups.
“We knew by resetting valuation expectations we would line up the right deal to allow us to focus on helping other e-commerce businesses boost profitability by deploying Profit Peak after we managed to see its value building and deploying it with our own stores.”
Penn-Kahn said that her company has already secured external investment and commitments from a group of popular stores to join its beta program deploying in time for the holiday season.