- Following its IPO, A.K.A. Brands, an accelerator that cultivates direct-to-consumer fashion brands, has acquired Mnml, a DTC menswear brand, for $48.6 million in cash and equity, according to a Thursday press release. The deal closed on Oct. 14.
- A.K.A. Brands noted it expects the acquisition to be immediately accretive to net income. In fiscal 2020, Mnml made about $20 million in net revenue, and approximately 20% of that revenue came from abroad, according to the press release. Mnml has generated a double-digit EBITDA margin this year to date.
- Mnml's clothing will be sold via Culture Kings in the U.S. and Australia, as well as through its website, per the press release.
For A.K.A. Brands, the Mnml acquisition is part of the company's effort to become an international leader in DTC fashion, Jill Ramsey, chief executive officer of A.K.A. Brands, said in a statement. Ramsey noted that the brand's merchandising chops and engaged customer base will drive growth for both the Mnml brand and Culture Kings.
"The acquisition reinforces our presence in the vibrant streetwear market, and we are confident that Mnml has tremendous opportunities for meaningful growth in the U.S. and internationally," Ramsey said in a statement.
In late August, A.K.A. Brands took advantage of the hot stock market and filed for an IPO, joining other companies in the DTC space, such as Allbirds and Honest Co. that have filed in recent months. The company initially planned to sell about 13.9 million shares at between $17 and $19, placing its value at $2.5 billion. However, by the time the brand debuted in September, it had lowered its price target to just $11.
As A.K.A. Brands carves out its share in the streetwear market, other companies have been entering the space, too. In March, streetwear and sneaker marketplace Stadium Goods unveiled a capsule apparel collection, featuring 11 items priced between $85 and $400. And last November, VF Corp bought streetwear brand Supreme for $2.1 billion, a move to continue building out its street category, which already included The North Face, Timberland and Dickies.