Swedish-based New Wave Group signed an agreement to acquire 100 percent of the shares in the Austrian textile wholesaler Cotton Classics Handels GmbH. The purchase price amounts to €47.6 million ($55mm) on a cash and debt-free basis and will be paid in cash.

Cotton Classics was founded 25 years ago and is headquartered in Schwadorf, just outside Vienna in Austria, where it also operates its logistics center. The company is one of the largest wholesale distributors in its sector in several Central and Eastern European countries, with subsidiaries in Germany, Switzerland, the Czech Republic, and Italy.

Cotton Classics represents approximately 50 leading international apparel brands through its B2B e-commerce platform, with about 90 percent of all orders placed on its website.

In 2024, Cotton Classics revenue was €96.7 million, and its equity as of July 1, 2025, is guaranteed to be no less than €31.5 million.

The company expects the acquisition to positively contribute to New Wave Group’s earnings this year; however, it will have a dilutive effect on the Group’s gross and operating margins, as Cotton Classics currently operates with lower margins than New Wave Group. The impact on operating margin is expected to be approximately minus one percentage point.

Over time, the introduction of New Wave Group’s brands into Cotton Classics’ portfolio is expected to significantly improve both gross and operating margins. The goal is to gradually increase Cotton Classics’ margins from 2027 onwards to meet New Wave Group’s average margins by 2030.

Completion of the transaction is subject to approval by the relevant competition authorities.

Through this acquisition, New Wave Group will strengthen its presence in several Central and Eastern European countries, particularly in Austria, Germany, Switzerland, and the Czech Republic, as well as in other countries in the region.

Wolfgang Horak, CEO and founder of Cotton Classics, said, “New Wave Group, known for its long-term commitment and excellent industry knowledge, will be the ideal owner to take Cotton Classics to the next level. By adding New Wave Group’s brands, we will be able to attract new customers, expand our reach, and grow sales across both existing and new brands.”

Torsten Jansson, CEO and founder of New Wave Group, added, “Our experience with B.T.C. Activewear in the UK, which we acquired three years ago — a multi-brand distributor with a business model similar to Cotton Classics — has shown us the value our brands can bring, not only by complementing but also by supporting and growing the existing portfolio. With Cotton Classics, we are acquiring a well-run and highly attractive company, along with valuable industry knowledge that will benefit the entire New Wave Group.”

Cotton Classics will become part of the company’s Corporate operating segment, with its primary focus on the promo sales channel.

New Wave Group owns 44 brands across the sports and leisure, gifts and home furnishings, and corporate spaces. Its sports and leisure brands include Ahead, Auclair, Craft, Cutter & Buck, and Tenson AB, while leisure brands include Termo Original, Seger, Marstrand, Sköna Marie, Gants Laurentide, Le Gant Paris Glove, Kate Lord, Clique Retail, and Pax.

Image courtesy Cotton Classics