Vince is expanding its brand portfolio.
The California-based contemporary label announced that it has acquired two womenswear brands: Rebecca Taylor, the eponymous New York designer label; and Parker, which is more of a commercial brand with a similarly feminine aesthetic and contemporary price point.
The all-cash deal totaled $19.7 million reflecting the payoff of $19.2 million of outstanding debt obligations and $0.5 million of compensation expenses. On the closing date, the assets of the acquired businesses included $0.7 million of cash.
Both brands were owned by Sun Capital, which also owns 75 percent of Vince. Both are distributed largely through wholesale channels like department stores in addition to their own e-commerce sites, while Rebecca Taylor also operates six brick-and-mortar locations. According to Vince, combined net sales for Rebecca Taylor and Parker totaled approximately $84 million last year.
“We are excited to be creating a diversified portfolio of highly recognized and distinct contemporary brands with this acquisition,” said Brendan Hoffman, chief executive officer of Vince. “The addition of Rebecca Taylor and Parker will position us to gain broad appeal across the contemporary spectrum.”
Hoffman continued, “We see opportunity to accelerate growth in each of these brands by implementing the Vince strategic playbook to build direct-to-consumer strategies, further expand brand awareness, and leverage core competencies through the sharing of best practices. The expansion of our revolving credit facility also provides us with additional financial flexibility to support our growth initiatives. We believe we have the opportunity to double revenue for the company over time with the combination of this acquisition and the continued execution of growth initiatives underway at the Vince brand.”