Online resale platform, thredUP, has acquired European fashion resale company, Remix, in an effort to fuel its growth and expand its reach into the European market.
“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 news comes at a time when resale platforms are continuing to show an upward growth trajectory, especially as eco-friendly and sustainable shopping choices are becoming favorable amongst consumers. In 2020, the secondhand market was estimated to be worth $21 billion and is expected to grow to $39 billion by 2025.
ThredUp’s acquisition of Remix is a strategic move that will help the company quickly scale its platform. Much like thredUP’s proprietary operating platform, Remix has built ‘single-SKU’ logistics to efficiently process millions of unique garments. And with the acquisition, thredUP is looking to add complementary operational infrastructure and an experienced management team to accelerate its go-to-market strategy and overall growth.
Remix will continue to operate as an independent business unit under the thredUP umbrella, led by CEO Lyubomir Klenov.
“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.”
Additionally, Klenov will also lead thredUP’s European expansion efforts as it continues to build out its presence across other key markets.
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.
According to thredUP, the deal is expected to be valued at about $28.5 million and is subject to customary purchase price adjustments. Upon closing, thredUP will grant the Remix management team $6.5 million in restricted stock units which will vest over four years.
Remix closed out the calendar year 2020 with$33.9 million in total revenue 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 serving as acting legal advisors to thredUP.