Decathlon in Talks to Acquire Majority Stake in Tradeinn for €1 Billion
Decathlon, a French sports retailer, is reportedly in negotiations to acquire a majority stake in Tradeinn, a Spanish e-commerce company specializing in sports equipment. The acquisition aims to strengthen Decathlon’s online sales strategy, according to Spanish media outlet Expansión.
Tradeinn’s Valuation
The deal values Tradeinn at around €1 billion, making it a significant acquisition for Decathlon. Tradeinn has around 20 platforms focused on different verticals, with Didavid Management and Suma Capital holding 70% and 30% of the company’s capital, respectively.
Acquisition Details
Decathlon has submitted an offer for the company, which would see David Martín, Tradeinn’s founder, maintain a minority stake and continue to run the business. The operation also involves international funds interested in a minority stake. The deal is expected to close in July or early August.
Decathlon’s Recent Developments
Decathlon recently launched Decathlon Pulse, a wholly owned subsidiary focused on investing in innovative brands, distributors, and businesses. The company has already made 21 investments in its portfolio, with Decathlon participating as a majority or minority shareholder.
Financial Performance
Decathlon reported a 4.4% year-on-year increase in revenue at constant exchange rates for the 2023 financial year. Adjusted for exchange rates and the impact of the closure of its business in Russia, revenues grew by 1.15% to reach $16.9 billion. The company recorded a net result of over $1 billion and sold a total of 1.19 billion items worldwide in 2023.
Online Sales
Online sales accounted for 17.4% of Decathlon’s turnover in 2023, a 0.7% increase from the previous year.
Tradeinn’s Performance
Tradeinn plans to close 2024 with a turnover of €600 million, according to its CEO David Martin. The company has reported a 21% growth in sales compared to the same period last year, driven by its verticals Trekkinn, Bikeinn, Runnerinn, and Snowinn.