What’s the deal with BizBiz and its acquisition of Cleaning Supply?
The company’s parent company, Cleaning Supplies, had recently announced a $300m buyout, which the company was able to complete last month, and now it’s looking to cash in on the deal by buying out its two-thirds of the cleaning supply company’s market cap.
According to CNBC, Bizbiz has also secured $2bn in funding from a number of large institutional investors including Goldman Sachs, BlackRock, and UBS.
The company is also looking to acquire another $4bn in cash to fund the acquisition.
What is BizBliz?
Bizbliz is the company’s cleaning and disinfection division, which provides cleaning supplies to major retailers, grocery stores, department stores, and department stores in the US, Canada, and Europe.
In addition to the company selling cleaning supplies, BIZBLIZ also provides the cleaning supplies needed for hospitals, businesses, and universities.
The BizBLiz company was founded in 2013 by a team of former employees of the now-defunct Staples cleaning and laundry brand, and the company is currently valued at $2.5bn.
Biz Bliz’s chief executive, Steve Ellender, was previously CEO of the brand.
What does this mean for consumers?
BIZBIZ’s $3.8bn purchase of Cleaning Supply was not a total surprise, as the company had been actively looking to buy out the cleaning company since the acquisition was announced last month.
In a statement, BizzBiz said it would retain the Biz Blew brand, but that it would also make the Cleaning Supply name a part of the company.
It’s worth noting that the company has a history of owning up to its mistakes and has recently come under fire for not paying enough attention to the quality of its products.
What’s more, as BizBlew struggled financially last year, it made some big changes to its product line.
Now, BBS has been working to rebrand its products in order to appeal to more customers and better compete against competitors.
Will it be good news for consumers, though?
For starters, B-Biz didn’t sell a ton of cleaning supplies in 2016, so its acquisition will only be good for a small number of consumers.
In fact, the company said that only about $2m worth of B-Bs were purchased in 2016.
Additionally, BbizBiz also isn’t going to be able to make as much money off of the deal as it initially thought.
The purchase will be the largest-ever acquisition of a cleaning and sanitation company, and it will also mark the first time the company will be able buy the cleaning and sanitization business itself, which it bought from Staples in 2015.
That business will remain in Bizble’s portfolio.
Is this a deal for the long haul?
B-BLIZ’s deal is a win for Bizbuys shareholders, but the deal will likely be a bit of a wash for consumers.
As a company that sells cleaning supplies and cleaning products, Bbs will be selling products that most consumers will be more familiar with, and that will make Biz Biz’s brand less recognizable.
B-Blew has had a good run with the brand, especially in the past year.
However, there are some questions surrounding how well the brand will perform once the cleaning business is sold, and B-BIW still doesn’t have a strong reputation for customer service.
What will happen to Biz-B-Bliz’s other products?
BBLIZ has announced that it will be rebranding its entire cleaning and cleaning supplies line, but will continue to sell its bleach, bleach and other products.
The bleach and bleach products will be available in a brand-new color, and customers will be given the option to purchase a limited number of the bleach and chlorine products in the same color as their BBS.
This new color is intended to appeal more to consumers looking for an alternative to the popular bleach, but we’ll likely see these products available in more traditional colors.
What do you make of this?
As the biggest retailer in the market, BBLiz should be well-positioned to take advantage of the acquisition, especially as the companies’ other brands are struggling to gain traction.
the purchase will likely come at a huge cost for consumers and investors.
BBLiBZ has a large number of competitors in the cleaning industry, and we may not be seeing much of a major competitor in the industry for quite some time.
If B-BS is successful, consumers and companies alike will be paying a lot more for B-BLEw’s products.
In the meantime, we can look forward to a fresh batch of BBLs in 2017, and a clean slate for cleaning supplies once BBLB-