Social Chain raises revenue forecast after acquiring German business for €250m
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Social Chain has acquired German business DS Group – one of the country’s largest suppliers of products to food retailers, discounters and drugstores – for €250m and has announced ambitious revenue targets of €1bn for 2023.
The Manchester-headquartered group, founded by entrepreneurs Steve Bartlett and Dominic McGregor in 2014, said the deal to acquire 100% of DS Group will “complement each other perfectly,”
Social Chain has raised its revenue expectations to more than €620m for 2021 and potential EBITDA of €40 to €50m in the first three years after acquisition and will be targeting €1bn for the 2023 financial year.
It will also be seeking a listing of Social Chain AG on the Frankfurt Stock Exchange’s Prime Standard before the end of 2021.
DS Group is one of the largest suppliers of products to food retailers, discounters, drugstores, teleshopping, DIY shops, self-service stores, furniture shops, cash & carry, specialist retailers, department stores as well as online and mail-order businesses in Europe.
It has 550 employees and is expecting revenues of more than €270m in 2021.
Wanja Sören Oberhof, CEO of Social Chain AG, said: “With the acquisition of DS Group, we are building a Social Commerce platform on an international scale.
“We will grow considerably in Europe and in the US. DS Group’s extensive brand and product portfolio is perfectly suited for direct marketing to end consumers via Social Commerce.
“At the same time, the diverse distribution channels of DS Group strengthen the marketing opportunities of the existing Social Chain proprietary brands.
“We thus have a comprehensive and modern multi-channel distribution system with a clear social-first strategy going forward.
“This makes Social Chain AG an attractive partner for innovative products also for retailers.
“The brands of the future will be shaped more and more by social communities and must be made available through as many marketing channels as possible. A win-win situation for all involved.”