Arvato Strengthens Growth Platform eCommerce
Gütersloh/Hanover. International service provider Arvato acquires major parts of Hanover-based Netrada Group and combines both companies' eCommerce businesses. The merger turns Arvato into one of Europe's leading service providers for integrated eCommerce services. The combined business activities will jointly generate a turnover of over EUR 300 million; the joint number of employees will increase to over 3,000*. The transaction is as yet to be approved by the respective competition authorities.
Thanks to the Netrada takeover, Arvato has considerably strengthened its competitive position on the European eCommerce market whilst also increasing its growth dynamics. Netrada Europe GmbH is one of the leading fashion industry eCommerce and logistics providers and counts fashion houses such as Esprit and C&A amongst its customers. Arvato will profit particularly from Netrada's strong position in the fashion and lifestyle segment. Market researchers are expecting online fashion retail to show two-digit annual growth figures over the next few years throughout Europe. The acquisition of Netrada is one of Arvato's most significant transactions so far. It will permanently strengthen Arvato and its position in the extremely promising eCommerce business, which is one of the platforms defined as a growth area within the scope of the Bertelsmann Group strategy.
Achim Berg, Arvato CEO and member of the Bertelsmann executive board, says: "The takeover perfectly matches our strategy of growing Arvato into an innovative, flexible and international business partner for relevant customers. Throughout Europe, the eCommerce services market exhibits attractive, sustained dynamics that allow high growth rates. This transaction represents Arvato's second major expansion step after last year's takeover of international financial services provider Gothia."
Frank Schirrmeister, Divisional Head of Arvato Supply Chain Management, says: "Once the competition authorities have approved the transaction, Arvato and Netrada will work closely together on the development of the best possible structure to allow extensive cooperation between the units involved. Our aim is clear: We intend to systematically utilize the dynamic market growth in the fashion eCommerce area in order to extensively expand the joint activities." Schirrmeister continues: "In this respect, we are relying on the staff's expertise. In the course of the imminent integration process, we will therefore do everything in our power to ensure that their jobs are safe and the current locations are retained."
*Figures stated refer to the 2013 financial year.
Arvato is a leading global service provider. Its staff of over 65,000 design and implement tailor-made solutions for a wide range of business processes along integrated service chains for business customers all over the world. These include data management, customer care, CRM services, supply chain management, digital distribution, financial services and customized IT services as well as all services related to the creation and distribution of printed materials and digital storage media.
Netrada Europe GmbH is a leading eCommerce and logistics service for the fashion industry. As a full-service provider, Netrada Europe covers the entire e-commerce process chain. Its range of services includes the development and operation of web shops, financial services, transportation and logistics, and customer service. Netrada currently operates more than 70 Web shops for 13 international fashion brands. Its major customers include Esprit, C&A, Tommy Hilfiger and Hugo Boss. Netrada currently employs over 2,000 people at three logistics centers in the greater Hanover area. Another major logistics base, which will provide logistics services for a key customer with substantial improvements in productivity and service quality, is currently being built in Hanover. Partly in connection with this major investment, Netrada fell into financial difficulties in recent months and had to file for the initiation of insolvency proceedings in October 2013.