TowerBrook Capital to buy jeans and sportswear maker True Religion for $835 mn
11 May 2013
US investment management firm TowerBrook Capital Partners yesterday struck a deal to buy jeans and sportswear maker True Religion Apparel Inc for about $835 million.
Under the terms of the deal, New York-based TowerBrook will pay $32 per share in cash, representing a 52 per cent premium to True Religion's share price on 9 October 2012, the day before the company announced that it had begun to explore strategic alternatives.
The board of directors of True Religion have approved the merger and recommended to shareholders to vote in favour of the transaction.
Founded in 2002 by Jeff Lubell, Los Angeles-based True Religion is a clothing company known for its premium -quality denim.
Its "Joey" jean with its twisted asymmetrical seams, colorful reinforced stitching and oversized low flap pockets became the cult favourite for everyone from fashionable stay-at-home moms to celebrities like Angelina Jolie, Jessica Simpson, Megan Fox, Kate Hudson and Jennifer Lopez as well male stars.
The Nasdaq-listed company has around 125 standalone specialty stores in 50 countries on six continents. Its products are also sold at major department stores like Bloomingdales, Saks 5th Ave and others.
Seth Johnson, lead director of True Religion said, ''After a thorough review of strategic alternatives to enhance shareholder value, we are pleased to reach this agreement, which provides our shareholders with immediate and substantial cash value representing a significant premium.''
Lynne Koplin, interim CEO and president of True Religion said, ''I am pleased to announce this agreement as it offers significant value to our shareholders. TowerBrook's investment is an important endorsement of the True Religion brand, its prospects and the hard work and commitment of our team.''
Andrew Rolfe, managing director of TowerBrook, said, ''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 and the True Religion team to help the company with brand building and international opportunities.''
