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Amazon Aggregators Branded and Heyday to Merge, Forming New Entity Essor

An Amazon contractor navigates a delivery route in New York City on April 22, 2024, as the e-commerce landscape continues to shift.

Recent developments indicate that Amazon aggregators Branded and Heyday are set to merge, according to sources familiar with the situation. This merger signifies a broader trend within the e-commerce sector—one that experienced significant expansion during the pandemic but is now undergoing a wave of consolidation.

Heyday’s CEO, Sebastian Rymarz, communicated to employees about the merger, which will create a new company named Essor, derived from the French word meaning “to take flight.” Rymarz emphasized that the merger aligns with their vision of enhancing brand potential through an integrated platform.

The official introduction of the new brand is anticipated in the coming days, with Rymarz projecting that the combined entities will yield approximately $400 million in annual revenue.

Furthermore, investment firms Apollo Global Management and BlackRock are reportedly in discussions to provide new debt financing aimed at bolstering the merged company and facilitating further acquisitions, as noted by Bloomberg.

Rymarz explained, “This merger is the result of a year-long pursuit for a partner capable of advancing our mission, enhancing our objectives, and stabilizing our financial situation. Branded is ideally suited for this role.”

At this time, representatives from both Heyday and Branded have not provided comments on the merger. BlackRock chose to remain silent on the issue, while Apollo did not respond immediately.

As part of the merger process, Heyday is expected to undertake significant layoffs, potentially affecting up to 70% of its workforce, according to an anonymous source with knowledge of the situation. It is expected that Branded will integrate Heyday’s technology staff along with some of its brands, including ZitSticka, a skincare line, and Boka, known for its fluoride-free dental products.

Both Heyday and Branded operate within a competitive and volatile market of Amazon seller aggregators. These companies initially leveraged low interest rates and surged e-commerce growth during the pandemic to collectively raise over $16 billion from leading investors in both Wall Street and Silicon Valley, aiming to acquire independent sellers on Amazon’s platform. The aggregator model garnered attention from prominent backers, including firms like L Catterton and BlackRock, as well as Affinity Partners, linked to Jared Kushner.

However, challenges have emerged since 2022, particularly as venture capital became scarce for loss-making enterprises and consumer spending shifted back to physical retail. This shift has strained the profitability of the acquired brands.

Thrasio, once hailed as a pioneer in the aggregator domain, filed for bankruptcy earlier this year, revealing the vulnerabilities within the sector. As consolidation among these aggregators hastens, Heyday had previously considered a merger with Dragonfly, which counts L Catterton among its investors, though these discussions ultimately fell through.

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