Answear hopes to finalize the acquisition of brands from Fashion Trends Group

Answear estimates that the acquisition of the organized part of the enterprise (ZCP) of the Fashion Trends Group (FTG) – SneakerStudio and PRM brands – will be finalized on June 1, 2023, said President Krzysztof Bajołek.

“We have a preliminary deal and the deal should close on June 1. We will take over two brands: SneakerStudio and PRM, leaders in the Central European markets in the sale of sneakers and streetwear. For now, we do not sell products from these entities,” Bajołek said during an investor chat.

“We buy everything related to e-commerce, but not B2B. We can see a whole spectrum of synergy effects here, starting from sharing the product offer through marketing and cross-selling activities, operational and logistics activities and IT systems. As for the impact of this acquisition on the results, this year there will be only about 6 months of sales consolidation, so the effects on revenues will not be large, and there will also be integration effects. We will try to ensure that the revenue effects are already visible next year,” he added.

Earlier, the company informed that the acquired organized part of the FTG enterprise has the potential to generate higher profitability than Answear.com alone, and the average ZCP e-commerce basket is PLN 322 compared to PLN 303 in Answear according to data for 9 months of last year. The main goals of the acquisition are, above all, a stepwise increase in the scale of business, reaching new groups of customers, a new market segment that is not served by Answear.com.

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Earlier, it was also reported that the acquisition of ZCP would take place entirely in exchange for shares in Answear.com. Under the terms of the agreement, Fashion Trends Group will take up a total of up to 650,000 Answear.com shares, which, with the issue price of PLN 29, means the transaction value is PLN 18.85 million. According to the transaction schedule, the resolution on the issue of shares will be voted on at the General Meeting of Shareholders, which is planned for March or April this year.

Answear is an e-commerce company founded in 2011 that sells branded clothing, footwear and accessories. Sales are geographically diversified, and none of the markets accounts for more than 30% of the company’s total revenues. The company has been listed on the main market of the Warsaw Stock Exchange since 2021.

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