The Social Chain AG
The Social Chain AG: SOCIAL Chain AG acquires 100 percent of DS Group: Revenue forecast raised to EUR 620 million in 2021
DGAP-News: The Social Chain AG
/ Key word(s): Takeover/Forecast
Media Release SOCIAL Chain AG acquires 100 percent of DS Group:
Berlin/Hamburg, 19 October 2021. Social Chain AG (WKN: A1YC99, ISIN DE000A1YC996) is about to complete the most important acquisition since its foundation. The Social Commerce company is acquiring 100 percent of DS Group, which is based near Hamburg. DS Group is an internationally operating brand and trading company with currently more than 4,000 products. The company is successful in developing, marketing and selling its own products and brands. The company has more than 700 trademarks, registered designs, patents and utility patents. One of the best-known brands is LANDMANN, the oldest German barbecue manufacturer. 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. With a total of 550 employees, the company is expecting revenues of more than EUR 270m in 2021. The contracts for the acquisition of DS Holding GmbH were signed today. Social Chain AG will pay a total purchase price of EUR 250.5m, which is made up of a cash component and a share component. The cash component is EUR 100m. The share component comprises 2.855 million new Social Chain AG shares from authorized capital. Based on the closing price of the Social Chain share of EUR 42.20 on 18 October 2021, the market value of the share component amounts to EUR 120.5m. As a result of this capital increase through contributions in kind, the number of Social Chain AG shares issued will increase from 11.453 million to 14.308 million. The shares of Social Chain AG are to be listed on the Prime Standard of the Frankfurt Stock Exchange before the end of the year. In view of the new sales volume and significant growth expectations, this uplisting makes all the more sense now, says Social Chain CEO Wanja S. Oberhof. Only a few weeks ago, at the Annual General Meeting, the company paved the way for admission to the Prime Standard (media release dated 30 July 2021). With the acquisition of DS Group, Social Chain AG expects total revenues of EUR 620m for the 2021 financial year (proforma consolidated). At the end of the first half of 2021, the proforma consolidated EBITDA was already around EUR 13m. A similar performance is expected for the rest of the year. The EBITDA-effective synergy effects of the transaction are estimated at a total EUR 40 to 50m in the first three years after acquisition. The number of Social Chain AG’s employees will increase to more than 1,400. Social Chain AG expects considerable growth on the basis of the integration of DS Group: revenue of more than one billion Euros is expected by the 2023 financial year. “Social Chain AG is building a leading Social Commerce platform on an international scale.” Wanja S. Oberhof: “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.” DS Group currently offers around 4,000 products in a diverse range of product categories. With 122 deals completed by Ralf Dümmel, Managing Partner at DS Group, in the VOX startup TV show “Die Höhle der Löwen” (German version of the UK’s “Dragon’s Den” and “Shark Tank” in the US), DS Group has, together with the founders, brought over 300 products into shops. From its own logistics location in the state of Mecklenburg-Western Pomerania with over 30,000 square meters of storage space, the company sends several million packages each year to end customers (B2C) and supplies more than 40,000 shops across Europe (B2B). “We will demonstrate how a perfect collaboration between Commerce and Social Commerce can succeed.” Ralf Dümmel, Managing Partner of DS Group: “For DS Group, the deal is a step into the future. We are excited that we are adding new strengths to our distinctive retail expertise. With Social Chain AG’s social media and e-commerce expertise, we are consistently expanding our successful business and, as part of Social Chain AG, we will have immediate access to their knowledge and operational implementation. Together we will show how a perfect collaboration between retail and Social Commerce can be achieved. We look forward to contributing our many years of know-how in sales, sourcing, product development, marketing and logistics to the new overall group.” In future, this will also be reflected in Social Chain AG’S management setup: Ralf Dümmel will be appointed to the company’s Management Board. As Chief Product Officer (CPO), he will be responsible for the areas of product, sourcing, retail marketing, logistics and sales. Social Chain AG’s Management Board will have three members in future. In addition to Dümmel (CPO), Wanja S. Oberhof (CEO) and Christian Senitz (CFO) will be leading Social Chain AG. “We are paving the way to help shape the new world of brands and commerce.”
The Social Chain AG: Social Commerce on a global scale
Contact: Jana Walker | Press press@socialchain.com
19.10.2021 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | The Social Chain AG |
Gormannstraße 22 | |
10119 Berlin | |
Germany | |
Phone: | +49 (0)30 208484010 |
E-mail: | contact@socialchain.com |
Internet: | www.socialchain.com |
ISIN: | DE000A1YC996 |
WKN: | A1YC99 |
Listed: | Regulated Unofficial Market in Dusseldorf (Primärmarkt) |
EQS News ID: | 1241688 |
End of News | DGAP News Service |