In a move to expand into the burgeoning streetwear scene, Farfetch Limited today announced that it is acquiring sneaker marketplace Stadium Goods.
The deal, with an enterprise value of $250 million, will extend the relationship between the two businesses, which first partnered in April.
According to FN’s sister publication, WWD, Farfetch purchased 100 percent of the Stadium Goods from its cofounders as well as minority shareholder LVMH Luxury Ventures. Payment will be made in both cash and Farfetch shares, with the acquisition expected to be completed in the first quarter of 2019.
“We are thrilled to welcome Stadium Goods to the Farfetch family. Having already collaborated with its exceptional team via the Farfetch marketplace, it is clear that there is a great opportunity for our two companies to leverage each other’s strengths to go after a larger share of an exciting and fast-growing segment of luxury fashion,” said José Neves, founder, CEO and co-chairman of the fashion platform.
The marriage is expected to help boost Stadium Goods’ international presence while giving Farfetch a portal into the swiftly growing luxury streetwear market — a category estimated to be worth $70 billion last year, according to management consulting company Bain & Co.
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“By leveraging Farfetch’s best-in-class cross-border logistics and technology as well as their luxury prowess, scale and customer base, we will be in a prime position to capitalize on the massive international demand for sneakers and streetwear,” said John McPheters, Stadium Goods’ co-founder and co-CEO. “José and his team share a similar outlook for the future of fashion and retail, and together, we believe the countless synergies and perfect cultural fit will make this a match made in heaven.”
Stadium Goods will remain a standalone brand on the Farfetch platform following the acquisition. It will continue to be led by its current management team.
“We’re excited about remaining independent, almost as a subsidiary of Farfetch. We’re maintaining the people, it stays in tact, and we’re charged with growing our brand and presence internationally and doubling down on things that we’ve been doing,” McPheters explained to FN. “At its core, there’s going to be pieces that are business as usual that we’ll continue to grow and innovate, but obviously there’s now more in the way of expertise, resources and guidance that we can leverage.”
And Stadium Goods co-founder and co-CEO, Jed Stiller, added, “A great way to categorize it is business as usual with supercharging key areas. And Farfetch’s technology is best in class in our opinion, so we’ll be reaching customers faster and more efficiently. We’ll still be co-CEOs managing this business; nothing is changing.”
In February, Stadium Goods also announced that mega European luxury conglomerate LVMH Luxury Ventures signed on to back the company — although financial details of the transaction were not disclosed. It is unclear how the latest merger will impact the February deal.
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