Stockholm-based New Wave Group has acquired 100 percent of the UK promotional, corporate and teamwear apparel company BTC Activewear Limited shares. The purchase of the shares is £33 million on a cash and debt-free basis and a cash transaction.
BTC Activewear was founded in 2000 through a merger of three regional businesses. Its distribution center and head office are in Birmingham. The company is the UK’s third largest wholesale distributor within its sector, with 50 international apparel brands. Ninety percent of BTC Activewear’s orders are placed through its website.
New Wave Group’s Sports & Leisure segment includes Ahead, Auclair, Craft, Cutter & Buck, and Seger.
In 2021, BTC Activewear’s revenue was £53.0 million. The acquisition will positively impact the Group’s results this year but will negatively impact its gross and operating margins, as these are lower in BTC Activewear than in New Wave Group.
The introduction of New Wave Group’s owned brands to its portfolio is, however, expected to increase its gross and operating margins in the future.
CEO and co-founder of BTC Activewear, Stephen Pope, who will continue as CEO, said, “I am delighted to have a strong financial owner that is known for its long-term commitment and deep industry knowledge. BTC Activewear will be able to grow and take further steps together with New Wave Group, where the mix between our understanding of and position in the UK market and New Wave Group’s experience and brands will be an unmatched combination.”
Torsten Jansson, CEO and founder of New Wave Group, said, “Through this acquisition, we establish New Wave Group as one of the main players in the UK market, which, of course, feels great. In addition, we will add a very attractive and well-run company to our company group, as well as invaluable industry knowledge that will benefit all New Wave Group companies.”