German based SellerX is to acquire US based Elevate Brands making one of the largest Amazon aggregator businesses which will have a European and US footprint with the deal expected to close by the end of June 2023.
The Amazon aggregator business exploded before the pandemic, but was already showing signs of reaching capacity and slowing before the Covid shutdowns, and it’s no surprise to see some consolidation in the business model.
The acquisition will see the combined companies will form SellerX Group with a diversified portfolio spanning over 40,000 consumer products. The combined business will have a strong global footprint and sales of over €400m. The combined brand portfolio will consist of over 80 Amazon-native private label consumer brands in the segments of sports & outdoors, home & kitchen, mobile accessories, pets, and consumables.
The combined business will build on SellerX’s advanced technology platform, global supply chain infrastructure with proprietary warehouse operations, product launching, and internationalization capabilities. Elevate Brands will contribute its strong expertise in turning marketplace-native products into consumer brands sold across multiple channels.
Leveraging a combined operational platform, the company will realise significant synergies across the value chain and achieve an attractive profitability profile through operational efficiencies. Furthermore, SellerX Group will have the ability to expand omni-channel distribution capabilities in local markets, including into traditional retail channels.
In connection with the acquisition, a number of existing SellerX shareholders are investing new equity financing of more than €60m. In addition their existing credit facility, which provides additional capital for M&A opportunities for the combined business, is being increased.
Elevate Brands and SellerX are a perfect match: a strong cultural fit, a shared vision, and complementary capabilities. This acquisition combines our know-how and diversified portfolios of strong brands with a market-leading technology platform and strong operational infrastructure. By leveraging our combined strengths, I am convinced we are well-positioned to drive further consolidation in the industry.– Philipp Triebel, co-founder of SellerX and Co-CEO of the combined company
We are thrilled to combine forces with SellerX and to continue building world class omni-channel brands. Together we have a mission of becoming one of the world’s leading consumer product companies. Our tremendously talented team are excited to continue expanding our portfolio across numerous distribution channels, including traditional retail partners. The combined business has the technology, expertise and a wealth of data that will enable us to identify emerging consumer trends, rapidly test and iterate product ideas and fulfill demand across Europe and North America.– Ryan Gnesin, co-founder of Elevate Brands and President of the combined company