ThredUp acquires Remix, debuts European expansion
U.S.-based fashion resale site ThredUp announced on Monday plans to acquire Remix Global AD, one of Europe's leading fashion resale companies, signalling the brand’s international expansion in Europe, where the secondhand market is expected to grow to $39 billion by 2025.
The price of the deal includes approximately $28.5 million, with $6.5 million in restricted stock units given to the Remix management team that will vest over four years. The acquisition is expected to close during the fourth quarter of 2021 and is subject to customary closing conditions and other deal specific closing conditions.
As part of the terms, Remix will operate as an independent business unit under the ThredUp umbrella, led by CEO Lyubomir Klenov. Klenov will lead ThredUp's European expansion efforts as it continues to build out its presence across other key markets.
"Lyubomir and his team have built a strong, lean, customer-first business, and they know how to deliver resale operationally across multiple markets in Europe," said James Reinhart, co-founder and CEO at ThredUp. "We're bullish about the massive opportunity in the European resale market and are thrilled about the chance to build on Remix's technology and operational expertise to help accelerate its growth.”
"We've long admired ThredUp's leadership in the United States and their dedication to building a mission-driven company that makes it easy to buy and sell secondhand," said Lyubomir Klenov, CEO of Remix. "Together, I believe we can build upon Remix's core operational engine, technology, and logistics to bring that scalable experience to the European market, where resale has only scratched the surface.”
The acquisition will accelerate ThredUp’s growth plans in Europe, as it displays strong domestic growth for ThredUp and Resale-as-a-Service (RaaS) expansion, including new deals with Vera Bradley, Farfetch, LG, and Madewell.
With this acquisition, ThredUp also adds a complementary operational infrastructure and an experienced management team to springboard its expansion into Europe, as it plans to invest in Remix's product offerings, processing infrastructure, and go-to-market strategy to accelerate its marketplace growth.
Finally, the Remix acquisition equally allows ThredUp the potential to extend its RaaS platform beyond the United States, enabling brands and retailers to deliver customized resale experiences to their customers in Europe.
In March, ThredUp raised $168 million in its initial public offering and earned a valuation of about $1.3 billion.
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