SVES, An Off-Price Apparel Distribution Company, Announces Plans To Go Public Via Merger With Relativity Acquisition Corp.

• SVES has entered into a business combination agreement with Relativity Acquisition Corp. (NASDAQ:RACY)
• The combined company, which will be named SVES, Inc., will have an implied Pro-forma enterprise value of approximately $707.25 million, assuming no further redemptions by Relativity's public stockholders prior to the business combination

NEW YORK, NY, Feb. 13, 2023 (GLOBE NEWSWIRE) -- SVES LLC, SVES GO, LLC, SVES CP LLC and SVES Apparel LLC (collectively, "SVES" or the "Company"), an Off-price Apparel distribution company based in Florida, and Relativity Acquisition Corp. (NASDAQ:RACY) ("Relativity"), a special purpose acquisition company, today announced they have entered into a definitive business combination agreement.  Upon closing of the proposed transaction, the combined company (the "Combined Company") will operate under the name "SVES, Inc." and intends to apply to be listed on NASDAQ Stock Exchange under the new ticker symbol "SVES."

Company Overview

SVES was founded in 2017 to fill a critical gap in the retail supply chain by providing full-price retail fashion brands an efficient and effective way to monetize overstocked items. Today, the Company is a leader in its space, and a key intermediary connecting full-price brands with off-price retailers which are able to sell inventory that would otherwise be sold or disposed of by full-price brands at a significant loss. 

SVES' differentiated business model includes a deep, two-sided buyer-seller network built up through longstanding industry relationships and revolutionary sorting capabilities that drive superior customer service and operational efficiency. These advantages have allowed SVES to unlock significant value for its customers by removing critical time- and labor-intensive steps in the process of preparing off-price retail products for sale. SVES' customer base includes a number of leading off-price retailers in the United States and abroad, supported by multiple warehousing locations in the US and Europe.

Following the business combination, SVES will continue to be led by its highly experienced leadership team of growth experts, including Timothy J. Fullum, Co-Founder and Chief Executive Officer; Salomon Murciano, Co-Founder and President; and Aron From, Chief Financial Officer.

Management Comments

"We are excited to partner with Relativity in this business combination, and look forward to the new opportunities it unlocks to generate significant value for the stockholders of the Combined Company," said Timothy J. Fullum, Co-Founder and Chief Executive Officer of SVES LLC. "This merger and entry into the public markets will bring us access to a much larger pool of capital which will help us continue to leverage the tailwinds of a compelling high-growth industry."

"Partnering with Relativity is an important step which we expect will only increase our ability to scale our asset-light business model," said Salomon Murciano, Co-Founder and President of SVES LLC. "We believe that the access to capital following this transaction will enable SVES to execute on its core roadmap, continue to reduce environmental impacts in the fashion supply chain and achieve meaningful growth milestones as we grow alongside our customers, suppliers and partners."

Tarek Tabsh, Chief Executive Officer of Relativity Acquisition Corp., said: "We are very pleased to support SVES in its transition to the public markets and expect this transaction will drive meaningful value creation for our stockholders. After carefully exploring a long list of potential transactions, we are thrilled to back a company which stood head-and-shoulders above any other candidate due to its impressive historic growth, strong margin profile and veteran management team which brings a clear vision for the combined company's future. We believe the Company's unique business model provides significant value to all its customers, while providing an efficient and profitable mechanism for SVES to access an attractive and high-growth end-market. We look forward to seeing our combined company thrive in the public markets going forward."

Transaction Overview

Under the terms of the Merger Agreement, the transaction is valued at an estimated pro-forma enterprise value of approximately $707.25 million, is expected to close in Q3 2023 and is subject to approval by Relativity's stockholders and other customary closing conditions.

Advisors

A.G.P./Alliance Global Partners is serving as financial advisor to Relativity. McCarter & English, LLP is serving as legal advisor to SVES and Ellenoff Grossman & Schole LLP is serving as legal advisor to Relativity.

About SVES

SVES LLC, SVES GO, LLC, SVES CP LLC and SVES Apparel LLC (collectively, "SVES")  is a leading wholesale distributor of discount and off-price fashion. SVES delivers differentiated garment and accessory assortments to major off-price retailers in North America and Europe. The SVES management team is led by off-price industry veterans, including Co-Founders Timothy J. Fullum and Salomon Murciano.