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News June 25, 2025

Cutter & Buck’s Parent Firm Makes Austrian Acquisition

New Wave Group said it has acquired Cotton Classics Handels GmbH, an Austrian apparel wholesaler serving the promotional products segment, particularly in Central and Eastern Europe.

By  Christopher Ruvo

Key Takeaways

• Strategic Acquisition: New Wave Group, parent company of Cutter & Buck (asi/47965) and others, has acquired Austria-headquartered Cotton Classics to expand its European footprint.

• Market Expansion: The deal will help strengthen New Wave Group’s – and Cutter & Buck’s – reach in Central and Eastern Europe.

• Eye on Europe: The deal comes as ASI Research just released a new comprehensive study on the European promotional products market.

New Wave Group, the Sweden-headquartered parent company of Counselor Top 40 supplier Cutter & Buck (asi/47965), has acquired 100% of the shares of Austrian-based apparel supplier Cotton Classics Handels GmbH – a move that holds business advantages for Cutter & Buck, executives said.

With subsidiaries in Germany, Switzerland, the Czech Republic and Italy, Cotton Classics carries about 50 apparel brands and generated €96.7 million in revenue, or about $112.35 million at today’s exchange rate, in 2025.

New Wave Group is paying €47.6 million in cash, or about $55.31 million, for Cotton Classics, which was founded 25 years ago and currently headquartered in Schwadorf, just outside Vienna. Cotton Classics will be part of New Wave Group’s corporate operating segment, with its primary focus being on the promotional products sales channel.

One of the largest wholesale apparel suppliers in several Central and Eastern European countries, Cotton Classics will help New Wave Group strengthen its presence in nations that include Austria, Germany, Switzerland and the Czech Republic – as well as in other countries in the region.

Joel Freet“As the New Wave Group footprint in Europe grows, so do the opportunities for more customers for Cutter & Buck in Europe.” Joel Freet, Cutter & Buck (asi/47965)

“Our experience with B.T.C. Activewear in the U.K., which we acquired three years ago, … has shown us the value our brands can bring, not only by complementing but also by supporting and growing the existing portfolio,” said Torsten Jansson, CEO and founder of New Wave Group. “With Cotton Classics, we are acquiring a well-run and highly attractive company, along with valuable industry knowledge that will benefit the entire New Wave Group.”

To that point: Joel Freet, CEO of Cutter & Buck, told ASI Media that the acquisition brings upsides for the Renton, WA-headquartered apparel supplier.

“We will have benefits over time,” Freet shared with ASI Media. “As the New Wave Group footprint in Europe grows, so do the opportunities for more customers for Cutter & Buck in Europe. We are already represented very well in Austria, though Cotton Classics has some more clients in other areas where we are not set up yet. All in all, the strengthening of New Wave Group by this acquisition of a supplier in its home market will improve our ability to serve clients with all New Wave Group brands, including Cutter & Buck.”

Cutter & Buck’s ties to Europe are representative of a growing trend in promo – the increased globalization of the industry, with promo firms not just sourcing from abroad but also providing solutions across national and continental boundaries. With that in mind, ASI Research just released its third annual study of the European promotional products market, which found that, despite headwinds, distributors there collectively increased sales on average by 1.22% to more than $14.24 billion.

In announcing its acquisition, New Wave Group noted that Cotton Classics has developed what was described as an advanced B2B e-commerce platform, through which about 90% of all its orders transact. New Wave Group also shared that the acquisition will contribute positively to earnings but caveated that it will detract from the group’s overall gross and operating margins, as Cotton Classics currently operates with lower margins than New Wave Group.

“Over time,” a statement read, “the introduction of New Wave Group’s proprietary brands into Cotton Classics’ portfolio is expected to significantly improve both gross and operating margins. The ambition is to gradually increase Cotton Classics’ margins from 2027 onward, with the goal of reaching New Wave Group’s average margins by 2030.”

Through its various brands, New Wave Group operates in three main segments – corporate, sports/leisure and gifts/home furnishings. Based on reported 2023 North American promotional products industry revenue of $74 million, Cutter & Buck ranked 23rd on Counselor’s most recent list of the largest suppliers in the industry. The new rankings debut in July.