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thredUP Acquires European Fashion Resale Firm Global Remix
Tuesday 27 July 2021

US-based online resale platform ThredUp Inc. (NASDAQ: TDUP) has entered into a definitive agreement to acquire European fashion resale firm Remix Global AD, the company said.

The acquisition will accelerate thredUP's growth plans in Europe, where the secondhand market was estimated to be USD 21bn in 2020 and is expected to grow to USD 39bn 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 acquisition will accelerate thredUP's growth plans in 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.

The consideration is expected to be approximately USD 28.5m, subject to customary purchase price adjustments, and upon the closing thredUP will also grant the Remix management team USD 6.5m in restricted stock units to vest over four years.

Total revenue for Remix in calendar year 2020 was USD 33.9m, 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.

thredUP is a resale platform for women's and kids' apparel, shoes and accessories.
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Date Published: 27/07/2021

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