Business
Digital Brands Group Announces LOI to Acquire Elevated Basics Brand Stateside
- Stateside's acquisition accelerates DBG's portfolio growth strategy: - The Stateside brand complements and enhances DBG's closet share and cross marketing
About this update from Digital Brands Group, Inc.
[{"type":"text","content":"- Stateside's acquisition accelerates DBG's portfolio growth strategy:\n - The Stateside brand complements and enhances DBG's closet share and cross marketing strategy:\n - Stateside's acquisition is consistent with DBG's commitment to grow its brand portfolio and increase DBG's growth, profitability and cash flow profile; and,\n - The Stateside brand is expected to be accretive to DBG's revenue in fiscal 2021\n\n\nAUSTIN, Texas, June 15, 2021 /PRNewswire/ -- DBG, Inc (NASDAQ: DBGI), a digitally first portfolio company, today announced that it has signed a non-binding letter of intent to acquire Stateside, a privately-owned global elevated basics brand.\nThe parties intend to enter into a binding agreement within the next thirty days, with the closing envisaged in the third quarter of 2021. DGB expects to fund the acquisition with a combination of cash and equity to provide the Company the optimum financial flexibility in the future. Completion of the transaction is subject to customary conditions, including but not limited to the following key conditions: Execution of the Definitive Agreement; Completion of mutually satisfactory due diligence; and Receipt of all required regulatory, corporate and third party approvals.Accordingly, there can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated.\n\"We are very excited to take the first steps towards the addition of Stateside to the DBG family. DBG believes there is a significant opportunity to increase the brand's direct-to-consumer channel, given that the brand is primarily a wholesale brand currently. Additionally, we believe that we can increase the brand awareness and customer reach to drive meaningful short and long-term revenue,\" said Laura Dowling, DBG's Chief Marketing Officer.\n\"The acquisition of Stateside is validation of our recent IPO and our vision and strategy to grow our brand portfolio, revenue and cash flow through acquisitions. We believe the Stateside brand will increase DBG's 2021 revenue while also driving near and long-term shareholder value,\" said Hil Davis, DBG's Chief Executive Officer.\"\n\"We are proud to sign the letter of intent to join DBG, a company that is modernizing the holding company model\" said Moise Emiques. \"Their direct-to-consumer and marketing expertise will allow us t...