Online luxury group Farfetch has acquired Stadium Goods, the world’s premier sneaker and streetwear marketplace, for an enterprise value of $250m.
The move gives Farfetch a strong position in the burgeoning premium sportswear space which was estimated to be worth $70bn last year. The price paid for Stadium Goods will be made up of cash and Farfetch shares with the amount of each to be determined upon completion of the deal.
Farfetch founder, CEO and co-chair José Neves said he was “thrilled” with the deal having collaborated with the company previously 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,” Neves said.
“The Stadium Goods team has built an incredible company, with a host of talented people, dedicated and loyal customers and remarkable brand equity. I am confident that we can help Stadium Goods grow its international presence for sneakerheads around the world through our expertise in technology, logistics and data.
“Farfetch will benefit from Stadium Goods’ brand, access to supply and a team with a strong passion for and knowledge of luxury streetwear. We can’t wait to get started with John, Jed and the rest of the Stadium Goods team.”
Stadium Goods was founded by John McPheters and Jed Stiller in 2015 and has participated in the Farfetch marketplace since April of this year. It specialises in new and deadstock (brand new, never been worn before, second-hand) products.
Following the acquisition, Stadium Goods will continue to operate as a standalone brand on the Farfetch platform and will be led by its existing management team. Stadium Goods’ inventory will be fully integrated into and available on the Farfetch marketplace, across all geographies including the US.
John McPheters, Stadium Goods co-founder and co-CEO, said: “Myself, Jed and our entire team couldn’t be more excited to join the Farfetch family as we enter the next stage in our evolution as a global brand and product offering. 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 capitalise on the massive international demand for sneakers and streetwear.
“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.”
The deal is subject to customary closing conditions and is expected to be completed in the first quarter of 2019.
It is the first acquisition to be announced by Farfetch since it floated on NYSE in September of this year.