Privalia, the fashion ecommerce in Spain most important in recent years, it has been acquired by its French counterpart, Vente-Privee, in a negotiation that apparently has taken a couple of weeks and for which an official purchase price has not been given, although it is estimated that it would have been approximately 500 million euros.
The Spanish firm has mentioned that with the purchase of Privalia, will help Vente-Privée, to strengthen its position within the increasingly competitive European retail segment. The news of the purchase is very interesting considering that in 2014, Privalia closed the year with sales of 414 million euros and record losses of 126 million euros. Privalia's workforce it was about a mile of workers.
The French company has confirmed the acquisition through a statement in which it expresses its intention to strengthen its position in the European market and its intention to continue innovating, including offering a better value proposition for the e-commerce focused on fashion. On the Privalia side, the senior managers expressed their happiness to be part of the creator of this business model.
They reveal that the alliance will allow them accelerate company growth, at the same time that it will also help them expand their offer to other equally important sectors. It is important to note that this purchase of Privalia does not mean the disappearance of the brand, much less the departure of the current managers. In fact, the statement mentions that Privalia will continue to maintain a high level of autonomy, at the command of the directors that today make it up.
Let us remember that this company of Spanish ecommerce I had been analyzing a possible sale and even a potential IPO for a couple of years, however it has only been until now that everything has been confirmed. Also say that there was another interested in acquiring Privalia, Showroomprive, however in the end it was Vente-Privée that made the purchase.