apparel retailer

Blackstreet Exits Distinctive Apparel

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Blackstreet Capital has sold DAI Investment Inc. (DBA Distinctive Apparel International), an owner of apparel brands. The buyer of DAI was not revealed by Blackstreet Capital.

DAI is the owner of five apparel brands including Chadwicks of Boston, Chasing Fireflies, Metrostyle, Territory Ahead and TravelSmith. The company sells its brands direct to consumers through both online and print catalog channels. DAI is headquartered south of Boston in Randolph, MA (www.chadwicks.com) (www.metrostyle.com) (www.territoryahead.com) (www.chasing-fireflies.com) (www.travelsmith.com).

Blackstreet acquired DAI in 2011 and completed the add-on acquisitions of Territory Ahead in 2013 and Chasing Fireflies and TravelSmith in 2016. During its term of ownership, the company made improvements in both operations and profitability. “The DAI management team, led by CEO Aldus Chapin, executed on the acquisition, turnaround and successful revitalization of DAI’s portfolio of iconic brands,” said Murry Gunty, Managing Partner at Blackstreet. “We are excited for the new opportunities available to the team and wish them continued success with their new partners.”

Blackstreet makes control investments of up to $15 million in corporate orphans and “storied” companies in transition that have from $25 million to $150 million of revenue. Sectors of interest include niche manufacturing, consumer and industrial products, value added distribution, specialty retail, business services, healthcare services and devices, media and communications, education and training, and multi-unit restaurants. The firm was founded by Mr. Gunty in 2002 and is based in Chevy Chase, MD (www.blackstreetcapital.com).

© 2017 Private Equity Professional | August 29, 2017

Searchlight Acquires Roots

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Searchlight Capital Partners has made a majority investment in Roots in partnership with the company’s co-founders Michael Budman and Don Green who have maintained a minority equity position in the company.

Roots is one of Canada’s leading lifestyle brands and sells women’s, men’s, children’s, and baby’s apparel; leather bags; footwear; active athletic wear; belts, small leather goods; and home furnishings. Roots has 220 retail stores in Canada, the United States and Asia and also has an active ecommerce business.   Roots maintains a state-of-the-art factory and distribution center in Toronto, both located near the company’s headquarters where all Roots products are designed. The company was founded in 1973 by Mr. Budman and Mr. Green, together with their wives, Diane Bald and Denyse Green (www.roots.com).

“Before making the decision to partner with Searchlight, Don and I had extensive discussions and meetings with the firm’s co-founders, Erol Uzumeri and Eric Zinterhofer, over a period of several months,” said Mr. Budman. “We were impressed by how well they understood and respected our brand. Not only do they have relevant experience, international expertise and financial resources to draw on, but they are also committed to Roots staying true to its longstanding values, culture and quality products.”

“Our investment will enable Roots to support its long-term growth ambitions,” said Canadian Searchlight co-founder Erol Uzumeri. “As one of the few iconic Canadian heritage brands, we see significant growth potential for Roots in both Canada and internationally across multiple distribution channels.”

Searchlight Capital Partners invests equity and debt in companies active in the telecom; communications, information and information technology services; business and financial services; industrial goods; and consumer sectors. The firm was founded in 2010 by its partners Oliver Haarmann, Erol Uzumeri, and Eric Zinterhofer. Searchlight is headquartered in London with additional offices in New York and Toronto (www.searchlightcap.com).

Toronto-Dominion Bank is providing debt financing for this transaction.

© 2015 PEPD • Private Equity’s Leading News Magazine • 10-28-15