Companies

Zalando to acquire fashion rival About You

Dec 12, 2024 Germany

The German company will make a voluntary public takeover offer to acquire up to 100% of the share capital of About You. The deal will allow it to capture a larger share of the European fashion and lifestyle e-commerce market

“Redefining fashion and lifestyle shopping by creating the best possible experience for customers and partners has always driven both our teams. I’m excited about how together we’ll be able to cover a larger share of the fashion and lifestyle market”, commented Robert Gentz, co-CEO and co-founder of Zalando.

About You’s major shareholders, including its founders, Heartland and management, have agreed to sell approximately 73% of the company’s shares to Zalando. The company’s board of directors wil alsol recommend that the shareholders accept Zalando’s offer and the three founders and members of the Management Board, Sebastian Betz, Tarek Müller and Hannes Wiese, will continue in their current roles.

The plan is for Zalando to coexist with About You in the future, so that both companies can continue to serve their respective target groups. In the B2C growth vector, the addition of About You, more focused on a younger audience, will enable Zalando to implement a two-brand strategy. In the B2B growth vector, the two brands will foster a complementary relationship by leveraging synergies in logistics, payment infrastructure and commercial collaboration.

Together, the two companies expect to grow GMV and revenue at a 5-year compound annual growth rate of between 5% and 10% by 2028, with an adjusted EBIT margin in the range of 6% to 8% in 2028. Together, they aim to cover a larger share of the 450 billion euros European fashion market in the long term than previously targeted.

“We are thrilled to team up with so many brilliant entrepreneurial colleagues and together move the success stories of Zalando and About You to the next level”, said Tarek Müller, the co-founder and co-CEO of About You.

Image Credits: corporate.zalando.com

Germany Acquisitions Companies ecommerce Fashion Zalando