Digital Brands Group announced it completed the acquisition of the clothing brand Sundry, according to a company press release Friday.
“The Sundry acquisition is expected to contribute significant revenue scale and operating leverage,” Hil Davis, chief executive officer of Digital Brands, said in a statement. “Additionally, we are also excited about the large opportunity to expand the Sundry brand into other verticals. We believe that the opportunity to cross merchandise Sundry and their customers to our other brands, add additional product categories and leverage synergies to reduce expenses will be accretive.”
Contingent on proper financing, Digital Brands announced its deal to acquire Sundry last January. In June, the company said it was in the “final stages” of closing the acquisition, but it also modified the agreement significantly. The new deal was set at a cash price of $5 million with $7 million in cash or equity at Sundry’s option, and another $20 million in equity. The original deal had a purchase price of $34 million in cash and $7.5 million in stock for Sundry.
On Dec. 1, Digital Brands closed on a $10 million public offering that would partly help fund its acquisition of Sundry. The next day, the company announced it expected to close on the deal by Dec. 16. Missing that date, the company then said it expected the Sundry acquisition to close on Dec. 23 after acquiring an extra $2.5 million in necessary funding.