Grupo Axo snaps up Privalia Mexico
In a statement released on Wednesday, the company said it entered into various agreements with shareholders in Privalia Direct Sale and Privalia Vendita Diretta, and partners of Privalia Direct Sale and Talented People to acquire all shares of Privalia Mexico.
Grupo Axo abstained from revealing how much it paid for the e-tailer, but said the completion of the acquisition will be subject to customary closing conditions including regulatory approval from Mexico’s competition watchdog Cofece.
According to Renato Guerra, Privalia’s country manager for Mexico, the country is not only the retailer’s largest market by sales volume by also the most profitable. It generates annual sales of 2 billion Mexican pesos ($104m) and is expected to grow by 25%. Privalia also has recently added new Mexican brands and suppliers to its platform.
Considered one of Mexico’s top online fashion destinations, Privalia was founded by Lucas Carne and Jose Manual Villanueva in Barcelona in 2006. The discount e-tailer offers everything from clothing, footwear and accessories from labels including Kate Spade, Armani and Coach, to furniture, home accessories and appliances.
In 2016, its co-founders sold the Privalia brand to Veepee (formerly Vente Privée) and, after a transitional period, stepped down from the board two years later due to personal reasons.
Privalia has currently a presence in Spain, Italy, Brazil and Mexico.
And based in Mexico City, Grupo Axo manages the Mexican business of international brands such as Abercrombie & Fitch, Bass, Bath & Body Works, Brooks Brothers, recently Nike, Rhapsody, Speedo, Taf, True Kids and Tommy Hilfiger, to name a few.
The Mexican franchiser reported net profits of 73.56 billion Mexican pesos ($3.85m) in the first quarter of 2019, representing an impressive 307% increase in sales compared with the same period last year.
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