Fashion

German socks and underwear brand Snocks sells minority stake to Cathay Capital


Via

DPA

Translated by

Nicola Mira

Published



April 8, 2022

German startup Snocks, based in Mannheim, south of Frankfurt, has sold a minority stake to private equity firm Cathay Capital, aiming to accelerate its international expansion of its socks and underwear business. . Cathay Capital is investing a significant amount, estimated at tens of millions of euros, in the clothing brand founded by cousins ​​Johannes Kliesch and Felix Bauer in 2016. The two founders retain a majority stake in the company. company and will continue to control Snocks’ business operations.

Founders of Snocks, Felix Bauer and Johannes Kliesch – SNOCKS GmbH

Just a few weeks ago, Snocks made headlines when it reported record sales of 32 million euros in fiscal year 2021. Kliesch and Bauer have now announced they have sold a stake to Cathay Capital in a deal worth several million euros. .
Snocks, which has so far been self-funding its expansion, made this decision so it could accelerate its growth and internationalization plans. Kliesch says that the brand “[wants] to expand its business in France this year and open an office in Paris. We expect to get around 1 million euros in revenue there, which is more than what we generate at the moment.” France will be a testbed before further expansion in other Western European countries such as Spain, Italy and Scandinavia.

Snocks’s is an online-only business, and the brand wants to invest more in its image, not only on the web, but also by hosting in-person events to expand its community. “We believe that our essential collections appeal to almost all target groups and there is still a lot of potential to be tapped in our main market, as well as overseas markets. To get the most out of it, we’ll also be investing heavily in our inventory so it can always be ready to ship,” added Kliesch. In addition, the founders plan to invest part of their capital in expanding Snocks’ product range, for example by outright buying or repurchasing shares of other companies.

“Ultimately what convinced us that Cathay Capital was the right partner for our next phase of growth was the company’s experience and the fact that it opened the door to a new ecosystem,” said Bauer. global status. For Kliesch and Bauer, Cathay Capital’s global footprint and local expertise, with deep roots in Europe, Asia and North America, are both key factors. The investment firm was first established in France in 2007, in a country where Snocks plans to establish a foothold in the coming months. “In addition, we plan to share our sourcing know-how in Asia, where the main manufacturing locations for Snocks products are located,” said Bauer.

Cathay Capital is a global investment firm operating in a variety of sectors, including consumer goods, corporate transformation and healthcare. It has a strong track record in supporting consumer brands like Juliette has a gun and Moose Knuckles. Cathay Capital has been operating in Germany since 2015 and its German team has invested in a number of industries. Snocks will be the company’s first investment in a digital native brand in Germany.

Fabien Wesse, managing partner at Cathay Capital, said: “We are delighted to help Snocks expand internationally and continue its impressive organic growth. He added that “[Snocks] has a unique business model and a strong team, which has proven its expertise in the field of online sales and marketing over the past few years. We are confident that our experience in the international rollout of consumer brands will make us a strong partner of Snocks and will allow us to help expand its remarkable success. ”



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