Digital consumer goods company Thrasio said it plans to go on the hunt for even larger eCommerce companies to acquire on the heels of its latest financing deal.
Thrasio announced this week it has inked a deal for a $500 million senior debt facility, pushing the total amount of capital the firm has raised to over $1 billion.
Thrasio buys and then integrates into its digital consumer goods platform Amazon third-party businesses and direct-to-consumer (D2C) eCommerce brands.
Armed with half a billion in additional financial firepower, Thrasio said it will now be able to acquire firms with up to $200 million in revenue.
The move comes after a strong 2020, a year in which eCommerce exploded amid the coronavirus pandemic. Thrasio saw its revenue surge past the $500 million mark, with a profit for the year of $100 million.
All told, Thrasio manages just under 14,000 products on its digital platform, with the New York and Boston-based company saying it delivered a product to 1 in 10 American households last year.
“We have perfected both our M&A and operations models — now it’s about driving leverage from our proven flywheel and continuing to build complementary capabilities,” Co-Founder and Co-CEO Carlos Cashman said in a press release. “This investment also enables us to acquire much larger ecommerce companies — up to $200 million in revenue — adding another dimension to our capabilities. The funds will also accelerate our (already rapidly scaling) DTC and product launch businesses.”
Investors include J.P. Morgan Chase Bank, N.A., The Private Credit Group of Goldman Sachs Asset Management, L.P. and RBC Capital Markets. This trio of top investors, in turn were joined in the deal by the Strategic Credit Group within Oaktree Capital Management, L.P., Bain Capital Credit, Barclays, BlackRock, BofA Securities, Inc., Credit Suisse Loan Funding LLC, Monroe Capital LLC, Morgan Stanley Private Credit, and UBS Securities LLC, according to Thrasio.