Stockholm-based New Wave Group has acquired 100 per cent of the shares of BTC Activewear Limited, which sells promotional, corporate and team clothing in the UK. The stock purchase has a value of £33 million on a cash, debt-free and cash transaction basis.
BTC Activewear was founded in 2000 through the merger of three regional companies. The distribution center and head office are located in Birmingham. The company is the UK’s third largest wholesale distributor in its sector, with 50 international apparel brands. Ninety percent of BTC Activewear orders are placed through its website.
New Wave Group’s sports and entertainment division includes Ahead, Auclair, Craft, Cutter & Buck, and Seger.
In 2021, the revenue of BTC Activewear was £53.0 million. The acquisition will positively affect the group’s results this year, but it will negatively affect the operating and gross margins, as these margins are lower in BTC Activewear compared to New Wave Group.
However, the introduction of New Wave Group-owned brands into its portfolio is expected to increase its gross and operating margins in the future.
BTC Activewear CEO and Co-founder Stephen Pope, who will continue as CEO, said, “I am delighted to have a strong financial owner known for his long-term commitment and deep knowledge of the industry. BTC Activewear will be able to grow and take more steps along with New Wave Group, where the combination of our understanding and position in the UK market, the New Wave Group experience and brands will be an unparalleled combination.”
Torsten Jansson, CEO and founder of New Wave Group, said, “Through this acquisition, we have established New Wave Group as one of the major players in the UK market, which, of course, feels good. In addition, we will add a very attractive and well-managed company to our portfolio. Our company, as well as invaluable industry knowledge, will benefit all New Wave Group companies.”