Source Capital has sold its portfolio company Bills Khakis to NEJ. NEJ partnered with Source Capital on the original acquisition of Bills Khakis in December 2015 and will now fully own and operate the business.
Bills Khakis is a designer and marketer of branded men’s sportswear including khakis, jeans, shirts, sweaters, belts, blankets and boxers. The company is based in Reading, PA (www.billskhakis.com).
NEJ provides supply chain services – purchasing, processing and reselling – to specialty stores, retailers and premium apparel brands, accessories, footwear and home goods. NEJ currently occupies 900,000 square feet of warehouse capacity, with the infrastructure and ability to support multiple divisions of business. NEJ was founded in 1990 by President Ed Mascolo and has operations in the US and Canada with a headquarters in Beacon Falls, CT (www.nejinc.com).
Bills Khakis will become part of NEJ’s Private Brands Division and will continue to be designed and manufactured in the United States. Products will be available for sale direct-to-consumers via the brand’s website and through wholesale distribution in specialty stores. John Crocco, a menswear industry veteran, will lead the Bills Khakis business and NEJ’s Private Brands Division. Mr. Crocco most recently served as the SVP of Merchandising and Design for Izod, a division of PVH and also previously served as the Creative Director for Perry Ellis, and as the Director of Product Development for J.Crew.
“Bills Khakis is an iconic apparel brand with a 25 year history of producing high quality menswear products that are proudly cut and sewn in the Unites States,” said Mr. Mascolo. “We are excited to leverage our 26 years of retail brand expertise, disciplined operational capabilities and facilities as well as deep industry relationships to build upon the tremendous history of the brand, as we position Bills Khakis for its next chapter of growth.”
Source Capital makes both control equity investments and mezzanine debt investments of $2 million to $10 million in companies with at least $2 million of EBITDA across a range of industries. Areas of specific interest include business services, light manufacturing, consumer products & services, healthcare, and value-added distribution. Source Capital was founded in 2002 and has offices in Atlanta and San Francisco (www.source-cap.com).
© 2017 Private Equity Professional | January 23, 2017
