Decathlon in talks to buy Tradeinn to create online giant in Spain
A leading sporting goods group owned by the French Mullier family wants to integrate a Spanish company to strengthen its e-commerce strategy.
Decathlon is in talks to acquire a majority stake in Spanish e-commerce giant Tradeinn.specializing in sports equipment, with the aim of Strengthen your online sales strategyin accordance with Several market sources consulted by EXPANSIÓN indicate that the transaction could approach 1,000 million euros of the company’s value.
A French group owned by the Mullier family and the leader in the sale of sporting goods in Spain. presented a proposal to Tradeinn shareholderscontrolled by Didavid Management (70%) and Suma Capital (30%), and is currently the parties are discussing the terms about a possible operation, sources indicate.
Decathlon has raised David Martin, the controlling shareholder of the group through Didavic Management. (which also includes Didak Lee), retain a minority stake in the group and continue to lead the management of the company.
Anyway, This is not an easy agreement.Well Martin’s priorityFounder and CEO of the sports equipment platform, has always been maintain control companies, so there is no guarantee that the deal will be completed.
More interested
In that sales processwhich coordinated German commercial bank Deutsche Bankthey are also participating international venture funds interested in buying only a minority stake. The transaction could close in July of this year or in the first weeks of August, although it is likely that a final agreement will not last until September.
Tradeinn sales launched on the market last year one day, Suma Capital’s investment in the company expired, where he ended up in 2015. Since then,The Catalan firm has made a huge contribution to accelerating Tradeinn’s growth.before reaching 600 million euros turnover budgeted for the group for 2024. When the Spanish fund entered the company, revenues were barely 45 million.
100% Tradeinn – the pearl of the portfolio of companies owned by Sumy – can reach valuation 1000 million eurosthe amount that, if reached, would make Tradeinn new spanish unicorn, Joining the club that has already been joined by eDreams, Idealista, Cabify, Jobandtalent, Glovo, Wallbox, Copado, Devo and Flywire.
He Tradeinn EBITDA It is expected to reach €60 million by the end of the year, up 20% from €50 million in 2023.
Tradeinnbased in Celler (Girona), andIt is one of the most important multidisciplinary e-commerce groups in Spain.. Has fifteen online stores, 13 of which are related to sports, and carries out processes around 30,000 orders dailyThe company sells about 150 countriesalthough the most important markets are Spain (15-20% of sales), France, Germany, the UK, the Nordic countries, the US, Japan and Brazil.
The sector has already seen an important deal in Spain in 2021, when JD Sports acquired Deporvillage, although the company is smaller than Tradeinn.
Tradeinn employs 550 people and its top-grossing verticals are cycling, mountain and snow gear, running, racquet sports, and motorcycle gear. It also has three non-sports stores dedicated to electronics, fashion, and DIY.
origin Tradeinn companies are dated 2008 yearwhen its CEO David Martin came on board and turned the business around. Until then, the company had been in the hands of Intercom’s Girona branch, run by Didac Lee, and had received two million euros from VenturCap (GVC Gaesco). It all started with the owner of a dive shop near the Medes Islands. who launched a website to sell their products online.
The acquisition of Decathlon would greatly strengthen its online channel.What does not reach 20% of turnover French company, whose net profit in 2023 worldwide amounted to 15.6 billion euros (+1.15%), with a net profit of 931 million euros (+0.87%).
The French group has a turnover of over 2,000 million in Spain.
Spain is Decathlon’s second largest global market, with gross sales (including VAT) of €2,106 million in 2022, according to the latest data available in the Commercial Register. That year, only 12% of total sales were online, with the rest coming from the 175 physical stores in the country, and the acquisition of Tradeinn will help develop this channel. Decathlon’s net profit in Spain in 2022 was €100 million.
By acquiring the Spanish company, the French group will be able to present its own brands, the most profitable for the group, on the Tradeinn platform and exponentially increase its online sales, as well as improve its online operations and processes.
Moreover, simply by integrating Tradeinn, its revenues in Spain will increase by almost 30%, all of which will come from the Spanish platform’s online channel, although the addition of Decathlon products could also contribute to a significant increase in Tradeinn’s turnover.
The deal will also help reduce Tradeinn’s influence over Nike, as the Spanish company and the American brand have had a close contractual relationship for some time, according to sources consulted.