Acting as adviser to Tradera during the targeted new share issue and minority sale to Ceder Capital, the challenge was to find a financial partner to support future growth while the management wanted to remain as majority owners. With Ceder as a new partner, the company aims for continued growth and expansion, focusing on sustainability and security.
Tradera is one of the largest independent C2C platforms in Europe, with over 3.2 million members and 6 million visits per week. The company was founded in 1999 and has since been a pioneer in the second-hand market.
The platform has a good search function and integrated solutions for payment, shipping, buyer protection. And Tradera's auction model is appreciated by both buyers and sellers. In 2022, goods worth approximately 3 billion were sold on Tradera's platform.
Throughout the process, we had full support and good cooperation. We could not have done it on our own.
The growing trend of reuse and investor interest
In Q4 2021, the company's current management conducted an MBO from its previous owner PayPal. The sale gave Tradera a new opportunity to grow and expand. It was then time to find a new financial partner for a minority stake.
"We chose to collaborate with Clearwater International because they were professional and positive. Throughout the process, we had full support and good cooperation," Stefan Öberg, CEO and co-owner, Tradera.
Tradera has always had a strong focus on sustainability. The company's vision is to lead the transition to a circular economy, and it has a clear policy to reduce environmental impact, working to create a safe and secure platform for its users. And the reuse trend is strong. Something that was clear in the interest from investors.
"The circular business model attracted many investors," says Tomas Almgren, Clearwater.
The underground sport evolves, so does the vision
In the following years, Mountain Village grew to become the world's second-largest disc producer. The company manufactured discs for its own brand, Latitude 64°, and took on the production for major brands like Dynamic Discs, Westside Discs, and Discmania.
"A fun detail is that all collaborations are done with a handshake, without written agreements. We have operated the business on trust, and it has proven to work well", says David Berglund, CEO and co-founder of Mountain Village.
The disc golf industry has long been comprised of entrepreneurs and enthusiasts who know each other. The company was courted by several investors with buying interest. The founders began to feel that it was time to bring in some fresh thinking and professionalise the business; they had taken the company as far as they could on their own. And due to all the collaborations, a holistic approach was needed.
Two buyers come together
Disc golf is still a relatively small sport, and as a leading player, there is an opportunity to truly impact the sport's future. To harness the potential of the business, a collaboration with Clearwater was initiated as advisors to find the perfect partner.
"The ambition, drive, accessibility, and passionate staff at Clearwater suited us. The sensitivity in navigating internally and the great respect for our situation were key. We could never have done it on our own; they went way and beyond to close the deal", says David Berglund, CEO and co-founder of Mountain Village.
The result was a combination of Equip Capital and Vendis Capital coming together and taking a joint majority stake in Mountain Village. Clearwater helped Mountain Village present the case of bringing all disc brands under one roof, including the acquisition of the Swedish brand Kastaplast just before the sale.
"The vision of bringing all brands under the same roof was a significant driving force for the investors. Additionally, the opportunity to drive the sport and the company forward simultaneously was appealing. The company wanted to find a buyer with experience in building consumer brands and the capital to bring all brands together", explains Martin Agerup, Clearwater.
Management remains as majority owners
Ceder Capital has strong expertise in sustainability and consumer companies, and they are committed to Tradera's growth. With Ceder as a new partner, Tradera positions itself for the next phase of development. The goal is growth and to utilize the platform's full potential. The company plans to expand into new markets and to continue investing in its platform.
Ceder Capital was chosen by Tradera's management because of their entrepreneurial and personal approach as well as knowledge in the consumer company sector. This gives the company a new opportunity to grow and expand, while ensuring that the company continues to be a sustainable platform, with new capital to support its growth strategy.
