Social Chain, which was founded by Manchester entrepreneurs Steven Bartlett and Dominic McGregor, has raised its revenue expectations to more than €620m for 2021 ahead of completing its "most important acquisition" in its history. The group is also forecasting to hit a revenue of €1bn by the 2023 financial year.
The company is acquiring 100% of DS Group, which is based near Hamburg and is best known for its brand 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 and carry, specialist retailers, department stores as well as online and mail-order businesses in Europe.
READ MORE: Social Chain's half-year revenue surges by more than $90m as growth plans continue
With a total of 550 employees, the company is expecting revenues of more than €270m in 2021.
Social Chain AG will pay a total purchase price of €250.5m, which is made up of cash and share components.
With the acquisition of DS Group, Social Chain AG expects total revenues of €620m for the 2021 financial year.
Social Chain is now headquartered in Berlin while it has additional locations in Munich, London, Manchester, New York, San Diego and Los Angeles. Its shares are traded on XETRA and several German stock exchanges.
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Social Chain CEO Wanja S. Oberhof said: "With the acquisition of DS Group, we are building a social commerce platform on an international scale.
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"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."
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Ralf Dümmel, managing partner of DS Group, added: "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."