The firm has exited its 2008 investment in clothing brand NYDJ Apparel.
BY: GRAHAM WINFREY
Falconhead Capital has sold women’s denim brand NYDJ Apparel to Crestview Partners and Maybrook Capital Partners.
Faclonhead declined to disclose a return multiple for the deal, but a source familiar with the matter said the exit generates more than a 3x return. Falconhead acquired 50 percent of NYDJ in 2008, investing from its $290 million Fund II. The company makes a variety of slim-fit jeans and for women as well as shirts, blouses and other items.
Under Falconhead’s ownership, NYDJ expanded its product line, diversified its distribution channels and began selling merchandise through its website, according to a statement.
The company falls outside of Falconhead’s typical target sectors of sports and consumer businesses, but attracted the investment from Falconhead in part due to the track record of NYDJ chief executive officer Edwin Lewis, the former president and vice chairman of apparel companies Mossimo and Tommy Hilfiger. Lewis also worked for Polo Ralph Lauren for more than 15 years, holding positions including executive vice president and president of Ralph Lauren Womenswear.
The sale of NYDJ marks Falconhead’s third exit following the sale of automobile consumer electronics company Escort in October 2013 and media and event business Competitor Group in December 2012.
Falconhead focuses on companies with revenue between $20 million and $150 million and companies with earnings before interest, tax, depreciation and amortisation between $5 million and $30 million.
The firm is led by chairman and CEO David Moross and typically invests between $10 million and $50 million of equity per transaction.