Combination of Distinct Yet Complementary Businesses
Creates Unique Total Retail Entity Positioned for Growth
The Company Will Host a Conference Call on
Highlights:
- etailz is an innovative and leading digital marketplace retail expert
- Capitalizes upon immediate opportunity to diversify into the fastest growing segment of retail: the digital marketplace
- Purchase price of approximately
$75 million payable in cash and stock, including potential contingent payments for the achievement of predetermined financial targets for fiscal years 2017 and 2018 and the assumption of liability for an employee retention bonus plan - etailz has a demonstrated track record of increasing revenue and profitability. From 2013 to 2015, sales grew from
$27 million to $93 million with operating income growing from$0.8 million to $3.4 million . - etailz revenue was
$116 million for the trailing unaudited 12-month period endingSeptember 30, 2016 , a 40% increase over the trailing 12 months for the same period last year - etailz has been ranked on the Inc. 5000 list of the fastest growing companies four years in a row
- Acquisition is expected to be accretive in the first full fiscal year (2017)
- Entire management team with digital marketplace expertise to remain
Trans World will serve as the umbrella corporation for the stand alone operation of etailz and FYE while benefiting from sharing certain infrastructure, development resources, scale and best operational and digital practices
etailz is a leading digital marketplace expert retailer, operating both domestically and internationally. They use a data driven approach to digital marketplace retailing utilizing proprietary software and ecommerce insight coupled with a direct customer relationship engagement to identify new distributors and wholesalers, isolate emerging product trends, and optimize price positioning and inventory purchase decisions. In the past 12 months, etailz sold over 30,000 SKUs from over 2,000 manufacturers and distributors in numerous product categories, primarily through the Amazon Marketplace.
“The structure of the deal allows for continuity, flexibility and incentive to achieve our combined long term goals,” commented
“In the past several years, the entertainment based retail industry and the retail landscape in general have experienced tectonic shifts and disruptions necessitating creative and transformative collaborations in order to continue serving customers within such a dynamic and competitive environment,” continued Mr. Feurer. “This acquisition unlocks a unique opportunity for our two companies to engage, compete, and thrive as a true omni-channel retailer. Of equal importance is the professional camaraderie we’ve developed with etailz as we’ve worked with CEO
“We are proud of the successful etailz progression over the past 8 years and we are excited to join forces with a company of Trans World’s scale, heritage, and industry reputation. We look forward to accessing the relationships, operational expertise and infrastructure they have built to help unlock the full potential of etailz and accelerating our progress towards being the industry leader for digital marketplace sales and expertise,” commented
etailz will remain headquartered in
Conference Call
The company will host a conference call on Tuesday, October 18, 2016 at 10:00 a.m. ET to review this announcement. Dial 877-407-9124 to participate. This call will be simultaneously webcast at the Company’s website, www.twec.com.
Trans World’s Advisors
In this transaction,
Etailz’s Advisors
About
Certain statements in this release set forth management’s intentions, plans, beliefs, expectations or predictions of the future based on current facts and analyses. Actual results may differ materially from those indicated in such statements. Additional information on factors that may affect the business and financial results of the Company can be found in filings of the Company with the
Contact:Trans World Entertainment John Anderson Chief Financial Officer (518) 452-1242 Contact: Financial Relations BoardMarilynn Meek () (212) 827-3773