New Wave Group has today signed an agreement to acquire 100% of the shares in the Austrian textile wholesaler Cotton Classics Handels GmbH. The purchase price amounts to €47.6 million (enterprise value) on a cash and debt free basis and will be paid in cash.
Cotton Classics was founded 25 years ago and is headquartered in Schwadorf, just outside Vienna in Austria, where it also operates its logistics center. The company is one of the largest wholesale distributors in its sector in several Central and Eastern European countries, with subsidiaries in Germany, Switzerland, the Czech Republic, and Italy. Cotton Classics represents around 50 leading international apparel brands and has developed one of the most advanced B2B e-commerce platforms in the industry - with about 90% of all orders placed through its webshop www.cottonclassics.com, where you may also find further information about the company.
In 2024, Cotton Classics revenue was €96.7 million, and its equity as of July 1, 2025 is guaranteed to be no less than €31.5 million. The acquisition is expected to contribute positively to New Wave Group's earnings already this year. However, it will have a dilutive effect on the Group's gross and operating margins (the expected impact on operating margin is approximately minus one percentage point), as Cotton Classics currently operates with lower margins than New Wave Group. Over time, the introduction of New Wave Group's proprietary brands into Cotton Classics' portfolio is expected to significantly improve both gross and operating margins. The ambition is to gradually increase Cotton Classics' margins from 2027 onwards, with the goal of reaching New Wave Group's average margins by 2030.
Completion of the transaction is subject to approval by the relevant competition authorities.
Through this acquisition, New Wave Group will strengthen its presence in several Central and Eastern European countries - particularly in Austria, Germany, Switzerland, and the Czech Republic - as well as in other countries in the region.
Wolfgang Horak, CEO and founder of Cotton Classics, comments:
"New Wave Group, known for its long-term commitment and excellent industry knowledge, will be the ideal owner to take Cotton Classics to the next level. By adding New Wave Group's brands, we will be able to attract new customers, expand our reach, and grow sales across both existing and new brands."
Torsten Jansson, CEO and founder of New Wave Group, adds:
"Our experience with B.T.C. Activewear in the UK which we acquired three years ago - a multi-brand distributor with a business model similar to Cotton Classics - has shown us the value our brands can bring, not only by complementing but also by supporting and growing the existing portfolio. With Cotton Classics, we are acquiring a well-run and highly attractive company, along with valuable industry knowledge that will benefit the entire New Wave Group."
Cotton Classics will become part of the Corporate operating segment, with its primary focus on the promo sales channel.
For further information, please contact:
Torsten Jansson, CEO and Group CEO, +46 31 712 89 01, torsten.jansson@nwg.se
Göran Härstedt, Deputy Group CEO, +46 703 62 56 11, goran.harstedt@nwg.se
About Us
New Wave Group is a growth company group that designs, acquires and develops brands and products in the corporate, sports & leisure and gifts & home furnishings sectors.
In 2024, the group had a revenue of SEK 9.5 billion, and the parent company's Class B share is listed on Nasdaq Stockholm Large Cap. The group's headquarters are located in Gothenburg, Sweden. www.nwg.se
This information is information that New Wave Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-06-18 12:34 CEST.
