September 4, 2017
Consumer, Retail, E-commerce and Leisure
Acquisition financing, Debt advisory
GCA Altium advises Equistone Partners on the financing of the acquisition of DefShop Group
GCA Altium acted as debt advisor to Equistone Partners on the acquisition of a majority stake in DefShop, a leading German multichannel retailer for streetwear and hip-hop clothing. The founder of the business, Alexander Büchler, and his family will together retain a minority shareholding. DefShop’s management team will also acquire a minority stake in the business.
DefShop was founded in 2006 in Berlin and has quickly grown into a multichannel platform with two physical stores. The company’s product range comprises over 25,000 articles from approximately 350 brands, including Adidas, Nike, Jack & Jones, and Converse. In addition, under its Herobrands umbrella, DefShop offers a large portfolio of proprietary own brands such as DNGRS, Just Rhyse, and Bangastic, as well as licensed brands such as Thug Life and Eckô. These are distributed through the B2B platform Roadmap1, through which DefShop also connects to its network of large-scale European retailers that includes Amazon, eBay, Vaola, and Rakuten. With 180 employees the group serves approximately 935,000 customers across Europe and is projected to generate revenues of c. €64 million in 2017.
Alexis Milkovic, Partner at Equistone, said: “DefShop has grown impressively within an extraordinarily exciting segment of the fashion industry and is regarded by teenagers and young adults as an institution and style authority for streetwear and hip-hop clothing. This positioning provides an outstanding basis for DefShop’s next phase of growth, which we are excited to support.”
GCA Altium provided debt advice on all commercial aspects of the acquisition financing and secured a competitive debt package, which reflects the company’s specific requirements.
Thorsten Weber, Director at GCA Altium, commented: “We are delighted to have acted as debt advisor for Equistone Partners, one of Europe’s leading mid-market private equity investors. The chosen financing structure fits perfectly to the company and its extraordinary growth perspectives.”
The transaction is subject to customary closing conditions and remains subject to clearance from anti-trust authorities. Terms of the transaction were not disclosed.