Elixinol acquires Vitable in $3.5m scrip deal to build $27m wellness group

What's the deal? Melbourne-based Elixinol WellnessDealroom has a profile for this one. Try Dealroom → (ASX: EXL) has signed a binding agreement to acquire VitableDealroom has a profile for this one. Try Dealroom →, an Australian personalised supplement subscription platform, in an all-scrip deal worth up to $3.5 million. The structure comprises $2.5 million in upfront equity, paid across five tranches in Elixinol shares, plus a $1 million "Platform Kicker" tied to performance milestones.

What each side brings: Elixinol sells hemp-derived health and wellness products, while Vitable — founded in 2019 by Larah Loutati and Ilyas Anane — runs a direct-to-consumer subscription model with proprietary personalisation technology. Vitable contributes more than $5 million in revenue to Elixinol's existing $14.4 million base over the last 12 months.

What's the endgame? The combined business is targeting more than $20 million in annual revenue, with a longer-term goal of $27 million in revenue and about $3 million in EBITDA by 2028 on full earn-out realisation.

Why now? Chief executive officer Natalie Butler framed the deal as Elixinol's next growth phase after a strategic reset. "Having reset the business and sharpened our focus on Australia, this acquisition marks the next phase of Elixinol's growth," she said.

What changes? Elixinol gains recurring revenue, direct relationships with thousands of consumers, and personalisation capability. Butler said Vitable's technology and consumer relationships are "highly complementary to our existing Australian health and wellness brands."

The signal: The deal reflects how wellness brands are chasing recurring revenue and first-party consumer data through subscription models, using acquisitions to move from one-off product sales toward personalised, repeat customer relationships.

Read more: businessnewsaustralia.com

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