German DefShop, an online streetwear and hip-hop clothing seller, has been acquired by the private equity firm Equistone Partners Europe. Defshop's founder, Alexander Büchler, will retain a minority shareholding in the business. The financial terms of the deal were not disclosed.
DefShop was founded in 2006 in Berlin, and has grown into a multichannel ecommerce platform with its own app and two physical stores. The company sells over 25,000 products from about 350 brands, including jackets, hoodies, jeans, sweatpants, shoes, and accessories such as sunglasses. DefShop also offers its own proprietary brands such as DNGRS, Just Rhyse, and Bangastic. These are distributed through the B2B platform Roadmap1, through which the company also connects to a network of large-scale retailers such as Amazon, eBay, Vaola, and Rakuten.
“DefShop has grown impressively within an 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," said Alexis Milkovic, Partner at Equistone, in a statement. "This positioning provides an outstanding basis for DefShop’s next phase of growth, which we are excited to support. As a priority we are looking at accelerated growth in the B2B area, the further internationalisation of the business, strategic add-on acquisitions, and the strengthening of DefShop’s own-brand strategy.”
The company currently employs around 180 people and has about 935,000 customers throughout Europe. DefShop expects to generate revenues of €64 million in 2017.
Read more: PE Hub (Press release)