Skip to content

AKA Brands acquires direct-to-consumer menswear brand Mnml for a sum of $48.6 million.

Public listing secured in September; brand expansion into streetwear sector aims at solidifying the company's standing as a global DTC fashion leader.

Initial public offering (IPO) completed in September, with streetwear brand serving as the next...
Initial public offering (IPO) completed in September, with streetwear brand serving as the next stride towards a global dominance in direct-to-consumer (DTC) fashion.

Brief Scoop:

AKA Brands acquires direct-to-consumer menswear brand Mnml for a sum of $48.6 million.

After its Initial Public Offering (IPO), AKA Brands, a nurturer of direct-to-consumer (DTC) fashion brands, has snapped up Mnml, a DTC menswear brand, for approximately $48.6 million in cold hard cash and equity, according to a thunderous press release. The deal went down on Oct. 14.

AKA Brands anticipates this acquisition to be an immediate cash cow for net income. In fiscal 2020, Mnml gathered around $20 million in net revenue, with about 20% of that revenue stemming from overseas markets, as stated in the press release. Mnml has managed to secure a double-digit EBITDA margin this fiscal year so far.

Mnml's attire will be up for grabs via Culture Kings in the United States and Australia, and their own website, as per the press release.

Insightful Gossip:

For AKA Brands, nabbing Mnml is part of their master plan to dominate the international DTC fashion scene, Jill Ramsey, the Big Cheese of AKA Brands, stated in a statement. Ramsey mentioned that Mnml's retail chops and fiercely loyal customers will fuel growth for both the Mnml brand and Culture Kings.

"The acquisition beefs up our presence in the sizzling streetwear market, and we're confidant that Mnml sports some juicy growth opportunities in the U.S. and abroad," Ramsey said in a statement.

In late August, AKA Brands took advantage of the blazing-hot stock market and filed for an IPO, joining other companies in the DTC space, like Allbirds and Honest Co. that have filed in the recent months. Initially, the company aimed to peddle about 13.9 million shares at between $17 and $19, ballparking its value at $2.5 billion. However, by the time the brand made its grand entrance in September, it had slashed its price target to a mere $11.

As AKA Brands muscle in on the streetwear market, other players have been making moves, too. In March, streetwear and sneaker marketplace Stadium Goods unveiled a snazzy capsule apparel collection, featuring 11 items priced between $85 and $400. And last November, VF Corp gobbled up streetwear brand Supreme for $2.1 billion, a savvy move to keep building their streetwear category, which already includes The North Face, Timberland, and Dickies.

  1. The rapid advancement in cybersecurity policies is crucial for businesses operating in the digital era, particularly in the field of AI.
  2. The space industry is forecasted to generate substantial profits in the coming years, attracting finance from various sectors.
  3. The fusion of AI and fashion has led to innovative garments that adapt according to weather conditions.
  4. The retail industry is closely monitoring the breakthrough in AI technology to enhance customer experiences and automate operations.
  5. The acquisition of Mnml by AKA Brands is indicative of the need for businesses to globalize and expand their reach in different markets.
  6. The recent trade policy changes have sparked concerns in the TV industry regarding content distribution and revenue generation.
  7. The culture surrounding health has evolved significantly in recent years, with people valuing mental wellness as much as physical fitness.
  8. The latest developments in AI technology have sparked heated debates about its impact on job markets across various industries.

Read also:

    Latest