OAKLAND, Calif., July 26, 2021 /PRNewswire/ -- ThredUp Inc.
(NASDAQ: TDUP), one of the largest online resale platforms for
women's and kids' apparel, shoes, and accessories, today announced
the initial phase of its international expansion strategy by
entering into a definitive agreement to acquire Remix Global AD
(Remix), one of Europe's leading
fashion resale companies. The acquisition will accelerate thredUP's
growth plans in Europe, where the
secondhand market was estimated to be $21
billion in 2020 and is expected to grow to $39 billion by 2025*. The news comes on the heels
of strong domestic growth for thredUP and
Resale-as-a-Service®
(RaaS®) expansion, including new deals with
Vera Bradley, FARFETCH, LG, and
Madewell.
The acquisition will accelerate thredUP's growth plans in
Europe.
Much like thredUP's own proprietary operating platform, Remix
has built custom 'single-SKU' logistics that can process millions
of unique garments efficiently. With this acquisition, thredUP adds
a complementary operational infrastructure and an experienced
management team to springboard its expansion into Europe. thredUP plans to invest in Remix's
product offerings, processing infrastructure, and go-to-market
strategy to accelerate its marketplace growth. 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. Learn more at
thredUP.com/europe.
The Remix acquisition also 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. A number of
the world's leading brands and retailers already rely on thredUP's
RaaS® platform to power their resale
channels, and European expansion opens doors to potential future
growth.
"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 is expected to close during the fourth quarter
of 2021 and is subject to customary closing conditions and other
deal specific closing conditions. The consideration is expected to
be approximately $28.5 million,
subject to customary purchase price adjustments, and upon the
closing thredUP will also grant the Remix management team
$6.5 million in restricted stock
units to vest over four years. Total revenue for Remix in calendar
year 2020 was $33.9 million, and
thredUP expects the acquisition to be accretive to its total
revenue, dilutive to its gross margin and modestly accretive to its
Adjusted EBITDA in the near term. Goodwin Procter LLP and
Kinstellar are acting as legal advisors to thredUP.
*GlobalData 2021 Market Sizing and Growth Estimates for
European Demand-Side Secondhand Market
About thredUP
thredUP is transforming resale with
technology and a mission to inspire a new generation of consumers
to think secondhand first. By making it easy to buy and sell
secondhand, thredUP has become one of the world's largest resale
platforms for women's and kids' apparel, shoes and accessories.
Sellers love thredUP because we make it easy to clean out their
closets and unlock value for themselves or for the charity of their
choice while doing good for the planet. Buyers love shopping value,
premium and luxury brands all in one place, at up to 90% off
estimated retail price. Our proprietary operating platform is the
foundation for our managed marketplace and consists of distributed
processing infrastructure, proprietary software and systems and
data science expertise. In 2018, we extended our platform with
Resale-as-a-ServiceⓇ (RaaSⓇ), which
facilitates modern resale for a number of the world's leading
brands and retailers. thredUP has processed over 125 million unique
secondhand items from 35,000 brands across 100 categories. By
extending the life cycle of clothing, thredUP is changing the way
consumers shop and ushering in a more sustainable future for the
fashion industry.
About Remix
Remix Global AD (Remix) is one of
Europe's leading fashion resale
companies, operating in nine markets across Central and
Eastern Europe. Founded in 2012,
Remix has built an operational infrastructure with custom
single-SKU logistics at its core that can process millions of
unique garments efficiently. Having spent years working for global
brands, the Remix founders were united by the opportunity to reduce
the destructive environmental impact of the fast fashion industry,
and shift consumers towards the circular economy. Learn more about
Remix at remixshop.com/bg.
Forward Looking Statements
This release contains
forward-looking statements. Forward-looking statements include all
statements that are not historical facts. The words "believe,"
"may," "will," "estimate," "continue," "anticipate," "intend,"
"expect," "predict" and similar expressions are intended to
identify forward-looking statements. These forward-looking
statements are subject to a number of risks, uncertainties and
assumptions. Except as required by law, thredUP has no obligation
to update any of these forward-looking statements to conform these
statements to actual results or revised expectations.
Investor Contact
Lana
Adair
The BlueShirt Group
ir@thredup.com
Media Contact
Christina
Schultz
thredUP
media@thredup.com
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