Spanish etailer Privalia has acquired German etailer Dress for Less from private equity firm Palamon Capital Partners in a bid to expand the company’s European reach.
Privalia, which already operates a private online sales club in Spain, Italy, Brazil and Mexico, has raised €88m (£76m) in new equity from General Atlantic, Highland Capital Partners, Index Ventures and Insight Ventures Partners part of the deal. It has not revealed the full value of the acquisition although reports suggest it is between €150m and €200m (£130m and £173m).
Dress for Less, which was launched in 1999, operates across the full price and discount sector. It has 500,000 customers and a total customer base of more than 1 million across 50 countries. Managing partners Mirco Schultis and Holger Hengstler, founders and managing partners of Dress for Less, will become shareholders in Privalia.
Privalia, which was founded in Barcelona in 2006, is run by Lucas Carné and José-Manuel Villanueva. Last month, it revealed sales growth of 140.6% over 2010 to €168.4m. It expanded into Mexico for the first time in 2010 and this deal marks its first move into Germany.
Speaking about the acquisition, Carné and Villanueva said: “There are significant strategic and operational synergies in this partnership. This acquisition brings a significant geographic expansion, a leadership position in Germany and expands the Privalia business model, providing Privalia with a larger and effective channel for the private sales return stock.”
The pair added that the company will continue to look for opportunities to expand into new markets as well as developing organically.