L Catterton has sold its stake in Sweaty Betty, a woman-based fitness and lifestyle brand, to publicly traded Wolverine Worldwide for $410 million in cash.
London-headquartered Sweaty Betty was founded in 1998 as a women’s premium activewear brand. In 2015, L Catterton invested in the company to accelerate the brand’s growth across channels and geographies including expansion in the United States, Europe and Asia.
In addition to its direct-to-consumer online store, Sweaty Betty has retail stores in the UK and Asia, and its products are sold in high-end department stores including Selfridges, Harrods and Nordstrom. The company is led by CEO Julia Straus.
“Six years ago, we began our partnership with L Catterton, and together we have continued to evolve Sweaty Betty from our Notting Hill roots into a global brand with an omni-channel presence across three continents,” said Tamara Hill-Norton and Simon Hill-Norton, the co-founders of Sweaty Betty, in a released statement. “With L Catterton’s support, we have not only been able to significantly expand the reach and scope of our business, but we have been able to take our passion and our mission from a neighborhood in London to women around the world.”
For FY2021, Sweaty Betty is projected to have annual revenues of approximately $250 million and an adjusted EBITDA of $25.6 million. Based on a purchase price of $410 million, this equates to an EBITDA valuation multiple of 16x. For a PDF copy of Wolverine Worldwide’s analysis of its acquisition of Sweaty Betty, click HERE.
“While building on its deep-rooted heritage of female empowerment through fitness, Sweaty Betty has become a trusted brand for women around the world,” said Jon Owsley, a managing partner of L Catterton. “We are honored to have been able to partner with Tamara and Simon, with Wittington Investments Limited – which recognized the brilliance of the brand and the founders early on and has supported the company since 2003 – and with Julia and her team, who bring a wealth of talent, expertise, and a strong cultural connection to the mission of the brand.”
Wolverine Worldwide (NYSE: WWW), is a marketer and licensor of casual, work, outdoor sport, athletic, and children’s footwear and apparel under a range of brands including Merrell, Saucony, Sperry, Keds, Hush Puppies and Wolverine. Wolverine Worldwide was founded in 1883 and has annual revenues of just over $2 billion. The company is headquartered just north of Grand Rapids in Rockford, Michigan.
“The acquisition of Sweaty Betty complements our strategic shift over the last several years from a traditional footwear wholesaler into a consumer-obsessed, digital-focused growth company. It also gives us a leadership position in the growing women’s activewear category,” said Blake Krueger, Wolverine’s chairman and chief executive officer. “Wolverine Worldwide has a long and successful track record of acquiring and building brands, including performance brands like Sweaty Betty, and we are thrilled to welcome them to our company.”
Greenwich, Connecticut-headquartered L Catterton invests from $50 million to $400 million of capital in consumer-focused companies. Areas of specific interest include food and beverage, retail and restaurants, consumer products and services, consumer health, and media and marketing services. The firm was founded in 1989 and has raised over $30 billion of equity capital across seven funds.
Sweaty Betty is being advised on this transaction by Goldman Sachs International and Financo/Raymond James; and Wolverine Worldwide is being advised by Rothschild & Co.
© 2021 Private Equity Professional | August 6, 2021
