apparel

Webster Capital has acquired Mondetta Canada, a designer and manufacturer of casual and athletic apparel.

Mondetta Canada has three operating units: Mondetta – casual apparel; MPG (Mondetta Performance Gear) – athletic and outerwear apparel sold to multi-sport athletes; and a private label division.  The company’s products are sold through retailers across the globe under its own brands as well as through MPG branded stores in Canada and South Korea.  Mondetta Canada was founded in 1986 and is headquartered in Winnipeg (www.mondetta.com) (www.mpgsport.com).

“We are excited about the opportunity to work with a leading established company in the activewear industry,” said Donald Steiner, Webster Capital Managing Partner. “We think the MPG brand offers a differentiated product line to what is currently available on the market in that it combines both quality performance fabrics with leading fashion styles. MPG is well-poised to take advantage of the continuing growth in consumer demand for elevated active and casualwear.”

Webster Capital invests in branded consumer, business- to-business, and healthcare services companies with revenues of $20 million to $100 million and EBITDAs from $2 million to $15 million. Transaction values typically range from $30 million to $100 million. The firm was founded in 2003 and is based in Waltham, MA (www.webstercapital.com).

“We are looking forward to working with Webster Capital. Besides their financial acumen, the Webster team brings to the table a group of individuals who understands the consumer product space, and more importantly, the changing face of retail and the distribution strategies around it,” said Co-founder and CEO, Ash Modha.  “Our experience in structuring this transaction has only reinforced how our values and synergies line up.”

KPMG (www.kpmg.com) was the exclusive financial adviser to Mondetta Canada for this transaction.

2015 PEPD • Private Equity’s Leading News Magazine • 5-13-15

Sycamore Partners has entered into an agreement to acquire The Jones Group for approximately $1.2 billion in equity value. Including net debt the transaction, which is expected to close in the second quarter of 2014, has an enterprise value of $2.2 billion.

The Jones Group (NYSE: JNY) is a designer, marketer and wholesaler of over 35 brands in the apparel, footwear, jeanswear, jewelry and handbag markets. The company markets directly to consumers through branded specialty retail and outlet stores, through concessions at upscale department stores and through its e-commerce sites. The company’s brands and licensing agreements are extensive and include: Nine West, Jones New York, Anne Klein, Kurt Geiger, Rachel Roy, Robert Rodriguez, Robbi & Nikki, Stuart Weitzman, Brian Atwood, Boutique 9, Easy Spirit, Carvela, Gloria Vanderbilt, l.e.i., Bandolino, Enzo Angiolini, Nine & Co., GLO, Joan & David, Miss KG, Kasper, Energie, Evan-Picone, Le Suit, Mootsies Tootsies, Grane, Erika, Napier, Jessica Simpson, Givenchy, Judith Jack, Albert Nipon, Pappagallo and Rafe. The Jones Group is headquartered in New York (www.jonesgroupinc.com).

“We are pleased to have reached this agreement, which we believe is a positive development for all of our stakeholders. This business, which I founded nearly 45 years ago, has expanded into a global portfolio of powerful brands,” said Sidney Kimmel, The Jones Group Founder and Chairman of the Board of Directors. “I am proud of our heritage and believe The Jones Group’s brands will thrive through our partnership with Sycamore.”

Sycamore Partners invests in consumer and retail companies. The firm has more than $1 billion of capital under management and is based in New York (www.sycamorepartners.com).

“We are honored that the Board of The Jones Group has entrusted Sycamore Partners as the steward of this portfolio of iconic brands. We look forward to a successful partnership with the company’s talented associates as we continue to serve The Jones Group’s many loyal customers,” said Stefan Kaluzny, Managing Director of Sycamore Partners.

BofA Merrill Lynch and Guggenheim Securities are acting as financial advisors to Sycamore Partners. Citigroup Global Markets is acting as lead financial advisor to The Jones Group and Peter J. Solomon Company is acting as financial advisor to the company’s Board of Directors.

© 2013 PEPD • Private Equity’s Leading News Magazine • 12-20-13

True Religion Apparel has entered into an agreement to be acquired by TowerBrook Capital Partners in a transaction valued at approximately $835 million. Deutsche Bank, Jefferies, UBS Investment Bank and Macquarie Capital have provided committed financing to TowerBrook in support of this transaction. The transaction is expected to close in the third quarter of 2013.

True Religion Apparel designs, markets, sells and distributes denim jeans and sportswear under the brand name True Religion Brand Jeans to consumers in six continents, including North America, Europe, Asia, Australia, Africa and South America. The company sells directly to consumers in the United States through full-price retail stores, outlet stores and through its retail Internet site. True Religion was founded in December 2002 by Jeff Lubell and is headquartered in Los Angeles (www.truereligionbrandjeans.com).

“TowerBrook’s investment is an important endorsement of the True Religion brand, its prospects and the hard work and commitment of our team. At this critical inflection point in our business, global growth and product development effort, TowerBrook’s support and experience will be a true differentiator,” said Lynne Koplin, Interim Chief Executive Officer and President of True Religion. “TowerBrook’s long-term approach toward investment and brand stewardship will best enable True Religion to maintain its leadership position in the marketplace. We are confident the next chapter for True Religion will be a successful one for our employees, customers and all other stakeholders.”

TowerBrook Capital Partners makes control investments in large and middle market companies across and array of industries that are located in North America and Europe. TowerBrook has experience in the consumer retail and luxury space and has made control-oriented investments in companies such as Jimmy Choo, Odlo, BevMo! and Phase Eight. In February 2013, the firm held a first and final close of its fourth fund, TowerBrook Investors IV, L.P., at its hard cap of $3.5 billion. TowerBrook has offices in New York, London, and San Francisco (www.towerbrook.com).

“True Religion is an established, high-end brand with a strong retail network and a loyal following. We are excited to combine our retail and apparel expertise with Lynne Koplin and the True Religion team to help the company with brand building and international opportunities,” said Andrew Rolfe, Managing Director of TowerBrook.

© 2013 PEPD • Private Equity’s Leading News Magazine • 5-13-13

TA Associates has completed a majority investment in Dutch, the parent company for fashion brands JOIE, Equipment and Current/Elliott.

Dutch is a designer and distributor of premium contemporary apparel under the labels JOIE, Equipment and Current/Elliott.  The company has experienced in excess of 30% revenue and profit growth each year over the last five years.  The Dutch brands are sold in more than 2,000 stores in 75 countries, including high-end department stores such as Saks Fifth Avenue, Nordstrom, Neiman Marcus, Barney’s, Harvey Nichols, Selfridges and Printemps, as well as specialty boutiques in the US and international markets. JOIE and Equipment also both offer direct sales through the company’s recently launched e-commerce sites and through six retail boutiques in Los Angeles, New York and Newport Beach. Dutch operates primarily out of offices in Vernon, CA and New York, NY (www.joie.com) (www.equipmentfr.com) (www.currentelliott.com).

“We are very happy to be working with TA Associates,” said Serge Azria, CEO and Creative Director of Dutch, who will remain CEO of Dutch following TA’s investment. “Out of the numerous offers we received, we chose TA because of their reputation, credibility and strength. They are a firm with a long and successful track record in the consumer industry. Our team has delivered tremendous and consistent growth throughout the recent consumer recession by delivering great design to the premium customer as a new luxury. We are confident that, with TA’s support, we’ll be able to complete the evolution of our portfolio into true lifestyle brands for savvy, fashion-minded consumers throughout the world.”

TA Associates makes buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries. Since founding in 1968, TA has invested in over 425 companies globally and has raised more than $18 billion in capital. The firm was founded in 1968 and has offices in Boston, Menlo Park, London, Mumbai and Hong Kong (www.ta.com).

“We are incredibly excited to partner with Serge Azria, a leader in the contemporary fashion space who has created brands that have achieved a loyal following in their individual segments,” said James Hart, a Principal at TA Associates who will join the company’s Board of Directors. “Under Serge’s leadership, Dutch has developed partnerships with the most prestigious department stores and specialty shops worldwide and we look forward to maintaining and helping grow these relationships further. With the recent addition of e-commerce and company-owned retail boutiques, we believe that the Dutch brands are well positioned to become leading lifestyle brands in the contemporary segment. In this partnership, we are looking to support the growth of the Dutch brand portfolio and work with the longtime management team and retail and distribution partners to continue increasing the brands’ footprints, collections and overall profile in the marketplace.”

The Sage Group, a national investment bank that provides merger and acquisition advisory services to branded companies, provided advisory services to Dutch, LLC.  Sage concentrates on the following sectors: apparel and accessories, specialty retail, luxury goods, footwear, personal care, action sports, tech-lifestyle, food and beverage, and other branded consumer segments. The firm is based in Los Angeles (www.sagellc.com).

“The new contemporary luxury segment has become an incredibly important revenue driver for both premium apparel companies and for retailers focused on this space,” said Jennifer Mulloy, a Managing Director at TA Associates who will also join the company’s Board of Directors. “We believe the contemporary niche represents an attractive opportunity for investment in the current economic environment, providing a great balance of design, quality and price, and that Dutch is well positioned to continue benefiting from these trends in the coming years.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-11-13