Zalando receives long-term debt financing of 40.7 Million euros
- Successful talks with Commerzbank, Sparkasse Mittelthüringen and KfW Bankengruppe
- eCommerce company to use funds to strengthen its logistic footprint and to finance business operations
- Zalando with solid and balanced financial base for growth and expansion
Commerzbank, Sparkasse Mittelthüringen and KfW Bankengruppe have agreed to provide Zalando GmbH with a long-term debt financing totalling 40.7 million euros. Europe’s leading online fashion retailer will use this capital to fund parts of the interior fittings of its new logistics centre. The construction site for the 78,000 square meter warehouse in Erfurt opened in December 2011. The extension to the building is expected to be completed in summer 2013. The financing package further contains a revolving credit facility to support the company’s business operations. “It is a very positive sign that the loan agreements have been successfully concluded. The confidence placed in us by the banks shows that we are on the right track establishing sustainable corporate structures,” said Jan Kemper, Zalando’s Chief Financial Officer. “Through the combination of equity and debt financing we further strengthened our balance sheet.”
“The extraordinary development of the online retailer over the past months and the highly professional talks convinced us,” said Michael Schmid, devisional board member and special adviser for corporate banking at Commerzbank. “Zalando is on its way to become one of most successful eCommerce companies in Europe and we would like to support them along the way.” Dieter Bauhaus, Chairman of the Board, Sparkasse Mittelthüringen, added: “We at Sparkassehave the responsibility to foster economic development in our region. We are therefore delighted to be a part of this important project for the Thuringia area and the city of Erfurt.” Zalando is currently building a state-of-the-art fulfillment centre in Erfurt to strengthen its European infrastructure. The Berlin based eCommerce company is now present in fourteen European markets. This September saw the launch of the Zalando online shops in Poland and Norway.
Zalando is Europe’s leading online retailer for shoes and fashion. Its extensive selection for women, men and children ranges from popular high street brands to much sought-after designer labels from over 1000 different international brands. Exclusive accessories, beauty essentials and sportswear make up Zalando’s wide range of products. A combination of unique services: free delivery and returns, a free service hotline and a 30 day returns policy make online shopping at Zalando an easy and secure shopping experience. With its own fashion blog, Facebook and Twitter accounts, Zalando provides customers with current fashion trends, product updates and news about the company. The company was founded in 2008 by Robert Gentz and David Schneider, and its headquarters are located in Berlin. Following on from its success in the German market, Zalando launched in Austria in 2009 and the Netherlands and France in 2010. Expansion to Italy, Great Britain and Switzerland followed in 2011. So far in 2012, Zalando has gone live in Sweden, Belgium, Spain, Denmark, Finland, Poland and Norway.
Commerzbank is a leading bank for private and corporate customers in Germany. With the segments Private Customers, SME Finance, Corporates & Markets as well as Central & Eastern Europe the Bank offers its customers an attractive product portfolio, and is a strong partner for the export-oriented SME sector in Germany and worldwide. With a future total of around 1,200 branches, Commerzbank has one of the densest networks of branches among German private banks. It has around 60 sites in 52 countries and serves almost 15 million private clients as well as 1 million business and corporate clients worldwide. In 2011, it posted gross revenues of almost 10 billion euro with 58,160 employees.
ABOUT SPARKASSE MITTELTHÜRINGEN
Sparkasse Mittelthüringen is the biggest Sparkasse in Thuringia and one of the six biggest in East Germany. The branch serves the areas of Erfurt (the state capital of Thuringia), the city of Weimar as well as the surrounding Sömmerda and Weimarer Land. The 900 employees at Sparkasse are responsible for more than 210,000 customers and approximately 3 billion euro worth of savings. With a credit volume of more than 1.6 billion euro, Sparkasse Mittelthüringen is one of the largest private and SME financiers in the region, making it the first point of contact for SMEs in Central Thuringia.