Farfetch (NYSE:FTCH) is buying Stadium Goods in a deal worth $250 million.
This deal will have Farfetch paying a total of $250 million for Stadium Goods. However, the company won’t just be using cash to complete the transaction. Instead, Farfetch is planning to use a mix of cash and FTCH stock to acquire Stadium Goods.
The exact split of cash and FTCH stock that will go into buying Stadium Goods has yet to be announced. Instead, the company says that it will decide the mix when the deal is ready to close and customary adjustments are made.
Farfetch notes that Stadium Goods has been taking part in its marketplace since April 2018. Once the deal closes, the company will continue to operate as a standalone brand. It will also be keeping its current management team after the acquisition is complete.
“I am confident that we can help Stadium Goods grow its international presence for sneakerheads around the world through our expertise in technology, logistics and data,” José Neves, founder CEO and Co-Chairman of Farfetch, said in a statement. “Farfetch will benefit from Stadium Goods’ brand, access to supply and a team with a strong passion for and knowledge of luxury streetwear.”
Farfetch still needs to complete customary closing conditions before the deal can close. It is expecting to finish the acquisition in the first quarter of 2019.
FTCH stock was up 5% as of noon Wednesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.