True Religion announced on Tuesday that private equity firm Acon Investments has acquired a majority stake in the company.
SB360 Capital Partners, chaired by American Eagle’s CEO Jay Schottenstein, also took part in the deal. True Religion stated that the acquisition would support the expansion of its product range and global presence.
The US-based clothing company will maintain its independence following the acquisition.
True Religion filed for bankruptcy protection five years ago. It has staged a revival by capitalising on its strong ties to hip-hop culture. For instance, in 2023 the brand achieved a 20% increase in sales, reaching $280m. Equally, earnings before interest, taxes, depreciation, and amortisation (EBITDA) reached $80m.
The investment in True Religion is part of a broader trend of decades-old independent brands finding new owners. Specifically, the 40-year-old Japanese menswear label Kapital was acquired by LVMH-backed private equity firm L Catterton. Similarly, Vera Wang was purchased by brand management firm WHP Global in December.
Source: Business of Fashion
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