Berlin-based SellerX has signed an agreement to acquire Austin, Texas-based Elevate Brands, bringing together two major players in the e-commerce aggregator space. Both companies have established themselves as highly trusted and reputable partners for marketplace-based sellers in their respective markets. The combined companies will form SellerX Group and become one of the world’s largest consolidators of e-commerce brands with a diversified portfolio of over 40,000 consumer products. According to a press release, the combined company will have a strong global presence and revenues in excess of €400 million. The combined brand portfolio will consist of more than 80 Amazon-native private-label consumer brands in the sports & outdoor, home & kitchen, mobile accessories, pets and consumer goods segments.
The combined business will build on SellerX’s technology platform and global supply chain infrastructure with proprietary warehouse operations, product launching and internationalization capabilities. Elevate Brands will contribute its expertise in turning marketplace-native products into consumer brands sold across multiple channels. Leveraging a combined operational platform, the company will realize significant synergies across the value chain and achieve an attractive profitability profile through operational efficiencies. Furthermore, SellerX Group will have the ability to expand omnichannel distribution capabilities in local markets, including into traditional retail channels.
The acquisition is expected to close by the end of June 2023, subject to customary completion conditions. SellerX current co-founders Philipp Triebel and Malte Horeyseck will continue to lead the combined company as Co-CEOs. Elevate Brands’ co-founders will take on key leadership positions: CEO Ryan Gnesin will serve as President of the combined business, Chief M&A Officer Jeremy Bell will become Global Head of M&A, and Chief Growth Officer Rob Bell will head Global Business Development. The operations of the combined business will be steered from the SellerX headquarters in Berlin, Germany.
In connection with the acquisition, a number of existing SellerX shareholders are investing new equity financing of more than €60m. The investment is led by Sofina with participation from L Catterton, Cherry Ventures, Felix Capital, 83North, Upper90 and TRCM Fund. In parallel, funds and accounts managed by BlackRock and Victory Park Capital have upsized their existing credit facility, which provides additional capital for M&A opportunities for the combined business.
