Eurazeo has agreed to pay €56 million for a controlling stake in Swedish sneaker and fashion label Axel Arigato.
The deal, which follows a $7.5 million investment from London-based Vaultier7 in 2018, will provide the company with new capital for its European expansion, including new retail locations, and its ecommerce offerings. Cult favorite Axel Arigato is also looking to develop its presence in the US and Asia.
The company started operations in 2014 with a focus on direct-to-consumer sales and now distributes through multiple channels. It currently has six physical stores and sells its products through department store chains such as Le Bon Marché and Harrods, as well as ecommerce marketplaces including Farfetch and Ssense.
The deal is Eurazeo's first European investment from its New York-headquartered consumer brands division, Eurazeo Brands, which it set up in 2017. The firm earmarked $600 million to $800 million for investments through the unit. Its portfolio includes backpack and accessories maker Herschel Supply Co and activewear label Bandier. Outside of Eurazeo Brands, the firm has invested in fashion brands such as Farfetch, which it exited last week for €90.4 million.