Bailey Nelson co-founders eye exit
Bailey Nelson, the Australian-born eyewear chain with 110 stores across four countries, is gearing up for a sale process. Co-founders Nick Perry and Peter Winkle are interviewing advisory firms, with a formal process expected to launch this year.
The business started from a single store in Paddington, Sydney, in 2012. It has since grown into a direct-to-consumer eyewear operator spanning Australia, Canada, the United Kingdom and New Zealand. Earnings are tracking towards $25 million for the current financial year, a marked turnaround from the $6.7 million operating loss reported in FY24.
Transaction snapshot
Deal value: N/A. Sale process yet to formally commence
Deal multiples: N/A. Sources suggest a high double-digit price-to-earnings multiple could be achievable in public markets, given the dual retail and healthcare positioning
Deal type: Trade sale considered the most likely exit route; an IPO has not been ruled out
Investors (current register): Co-founders Nick Perry and Peter Winkle, Sydney investor Ben Barzach, the Cornish family
Four boutique advisory firms have pitched for the sell-side mandate, with a trade sale considered the most probable outcome. An IPO remains on the table. Sources told the Australian Financial Review that Bailey Nelson's combined retail and healthcare model could command a high double-digit PE multiple in public markets.
The company generated $126 million in revenue in the year to 29 June 2024, up 2.9 per cent year-on-year, according to ASIC filings by its holding company, Ben Buckler Eyewear Pty Ltd. It narrowed its net loss to $6.7 million from $13 million the prior year. The accounts also showed a $25.5 million net liability position, approximately $17.7 million in negative working capital and $6.7 million in operating losses. Auditors signed off on a going concern basis, noting improving financial performance.
Bailey Nelson is led by Alex Brandon, the former chief executive of outdoor retailer Macpac. The company operates a distinctive model in which an optometrist is stationed at the back of every store, catering to customers needing prescription glasses or contact lenses. This blended retail-healthcare proposition differentiates it from pure-play eyewear retailers.
The group also operates a joint venture and partnership structure. It owns approximately 50 per cent of several locations, including Newtown, Byron Bay and Auckland, and 60 per cent of the Hobart business.
The sale process arrives amid a wave of deal activity in the global eyewear sector. EssilorLuxottica, the category dominant player that already owns Sunglass Hut and OPSM in Australia, and Lenskart, the Indian multinational eyewear company based in Gurgaon, are both actively seeking scale through acquisition.
Lenskart listed on the Indian stock exchange in November 2025. It has been on a buying spree, acquiring Japanese chain Owndays, Spanish brand Meller and investing in AI-powered eyewear startup AjnaLens. Its presence across more than 10 countries and aggressive expansion strategy make it a credible acquirer of established retail platforms.
In the United States, Warby Parker (often cited as Bailey Nelson's closest comparable) has pivoted towards technology. In May 2025, Google committed up to US$150 million ($240 million), including an equity investment, to co-develop AI-powered smart glasses with Warby Parker under the Android XR platform. The first products are expected to launch in 2026. This partnership signals a broader convergence of eyewear and technology that could reshape how optical retail businesses are valued.
Closer to home, BGH Capital last month acquired a near-50 per cent stake in Two Svge, a Perth-based online sunglasses brand, in a deal reportedly valuing the business at approximately $60 million. Two Svge generated $11 million in EBITDA in FY25.
The key question for potential acquirers is whether Bailey Nelson's improving earnings trajectory (from a $6.7 million loss to a forecast $25 million in earnings) can sustain itself and justify a premium multiple. The dual retail-optometry model is a genuine differentiator, but the $25.5 million net liability position and negative working capital will require careful due diligence.
For trade buyers such as EssilorLuxottica or Lenskart, the 110-store footprint across four countries offers immediate scale. For financial buyers, the franchising and JV structure adds complexity but also presents opportunities to optimise ownership stakes across the network.
