ThredUp acquires Remix, a European apparel resale business, for more than $28M
- ThredUp has agreed to acquire Bulgaria-based secondhand apparel company Remix Global AD for $28.5 million, plus $6.5 million in restricted stock units that will vest over four years, the company said Monday.
- Remix, like ThredUp has a consumer-facing website and has developed efficient systems. ThredUp compared these systems to its own platform in a press release. Subject to normal conditions, the deal is expected close in fourth quarter.
- According to the release, Remix will be an independent business unit operating under ThredUp. Lyubomir Klenov (Remix CEO) will lead ThredUp’s European expansion.
Amazon is not the only retailer that has a lucrative side hustle. ThredUp is a well-known e-retailer for used clothes, but it also provides logistical services to other retailers looking to join the growing resale market.
As ThredUp noted in its release Monday, its tie-up with Remix comes after it clinched deals to provide Vera Bradley, Farfetch, LG, and Madewell with its resale service logistics. Thredup announced its most extensive deal last week with Madewell. Since the 2018 launch, Thredup has processed more than 125 million unique secondhand products from 35,000 brands in 100 categories.
ThredUp’s European sales are already strong and the deal is a smart move. ThredUp made clear its expansion plans on Monday. According to the release, Remix has “built custom single-SKU logistics that can process millions unique garments efficiently” and ThredUp plans to invest in Remix’s product offerings, processing infrastructure and go-to market strategy to accelerate its market growth.
The rising popularity of clothing resale — which ThredUp and GlobalData estimate will be a $77 billion market in five years, its growth outpacing the wider apparel sector eleven-fold — is a global phenomenon. Artisan marketplace Etsy last month ponied up $1.6 billion for U.K. secondhand apparel marketplace Depop, which has some 30 million registered users across about 150 countries. ThredUp projects that Europe’s secondhand sales will surpass $21 billion in 2025 and reach $39 billion in 2025. With $33.9 million in sales last year, Remix was a big player.
ThredUp CEO James Reinhart stated that they are bullish on the huge opportunity in Europe’s resale marketplace and were thrilled to have the opportunity to leverage Remix’s technology and operating expertise to accelerate its growth.
ThredUp stated that it expects the acquisition to be accretive and dilutive to its gross profit, as well as modestly accretive for its Adjusted EBITDA over the short term.