Amazon Aggregators Branded and Heyday to Merge, Forming New Entity as Industry Faces Consolidation

Amazon aggregators Branded and Heyday are set to merge, marking a significant consolidation in the once-booming e-commerce sector. CNBC reports that the new entity, named Essor, will be introduced in the coming days. The name, meaning “take flight” in French, reflects the companies’ ambition to elevate brands through their platform.

According to Heyday CEO Sebastian Rymarz, the merger will create a combined entity expected to generate $400 million in annual revenue. Apollo Global Management and BlackRock are reportedly negotiating to provide new debt financing to support further acquisitions by the merged company.

In a note to employees, Rymarz emphasized that the merger is the culmination of efforts to find a strategic partner to advance their mission and strengthen their balance sheet. “Branded is the perfect partner,” he stated.

As part of the merger, Heyday is anticipated to undergo substantial layoffs, potentially affecting up to 70% of its workforce. Branded will integrate Heyday’s technology team and acquire several brands, including skincare line ZitSticka and dental care brand Boka.

The consolidation comes as the market for Amazon seller aggregators, which surged during the COVID-19 pandemic, faces significant challenges. Aggregators had initially capitalized on low interest rates and e-commerce growth, raising over $16 billion to acquire independent sellers on Amazon’s platform. However, with a cooling demand for e-commerce and venture funding drying up, many aggregators have struggled to maintain profitability.

Thrasio, an early leader in the space, filed for bankruptcy earlier this year, highlighting the sector’s difficulties. The planned merger between Branded and Heyday is part of a broader trend of consolidation among aggregators, as the industry adapts to a changing economic environment.