New Wave acquires BTC activewear for £33 million

Sweden-based New Wave Group has acquired 100% of the shares of BTC activewear for £33 million.

CEO and co-founder of BTC activewear, Stephen Pope, who will continue as CEO for the company, said: “I am delighted to have a strong financial owner, that is known for its long-term commitment and deep industry knowledge. BTC activewear will be able to grow and take further steps together with New Wave Group, where the mix between our understanding of and position in the UK market and New Wave Group’s experience and brands will be an unmatched combination.”

In 2021, BTC activewear’s revenue was £53.0 million. The acquisition will have a positive impact on New Wave Group’s result already this current year but will have a negative impact on the group’s gross and operating margin, as these are lower in BTC activewear than in New Wave Group. The introduction of New Wave Group’s own brands to the company’s portfolio will however allow for a considerable increase in both the gross and operating margin of BTC activewear in the coming years.

BTC activewear was founded in 2000 through a merger of three regional businesses and has its distribution centre and head office in Birmingham. The company is the UK’s third largest wholesale distributor within its sector, offering around 50 leading international apparel brands. BTC activewear’s sales model showcases the potential of e-commerce for B2B sales, as around 90 % of orders are placed via the company’s webshop.

The UK is one of Europe’s biggest markets for promotional products, with a clear trend towards increased focus on own-brand products. Together with BTC activewear, who has a broad and well-established customer base, New Wave Group will have a strong platform for the distribution of the group’s brands in the UK.

Mr Pope sees big opportunities for BTC activewear through the addition of New Wave Group’s own brands. He added: “With a more comprehensive and improved customer offer, we will be able to reach new customers and compete in new areas. Of course this will be beneficial to the business and also allows us to grow sales of our existing portfolio of brands.”

Torsten Jansson, CEO and founder of New Wave Group, also has a bright view of the future. He commented: “Through this acquisition, we establish New Wave Group as one of the main players on the UK market, which of course feels great. In addition, we will add a very attractive and well-run company to our company group, as well as invaluable industry knowledge that will benefit all New Wave Group companies.”

New Wave Group, founded in 1990, designs, acquires and develops brands and products in the corporate promotions, gifts and home furnishings sectors. Its apparel brands include Clique, Harvest, Printer, MacOne, ProJob, Cottover, Grizzly, Derby of Sweden, No Problem, DAD, No Label, Cutter & Buck, Annika, Craft Sportswear, Ahead and Kate Lord.