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.
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.
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.
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