Finding the Right Private Equity Partner Who Shares Management’s Strategic Vision


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Business:

Affliction Holdings, LLC, together with its affiliated brands and companies (“Affliction” or the “Company”), is a leading branded apparel company based in Seal Beach, California.  Affliction symbolizes an adrenaline-filled lifestyle and the Company’s clothing appeals to enthusiasts of many different extreme sports (including skate boarding, snowboarding, MMA, surfing, NASCAR and motocross) as well as rock’n roll music.


Transaction:

Affliction Holdings was recapitalized by Wells Fargo and New Evolution Ventures.


Challenges:

Due to a lack of unified leadership and direction, the Company had experienced negative performance trends in the three years prior to our engagement. One of Affliction’s founders hindered management’s ability to secure a normal banking/lending relationship. Inherent challenges, including Affliction’s trendy/high fashion style, as well as its association with the emerging sport of MMA and the UFC, deterred many investors from the opportunity.


Solution:

FocalPoint advised the Company with respect to a recapitalization by New Evolution Ventures and Bob Meers, who subsequently joined the Company as CEO.  Bob had previously served as CEO of lululemon athletica and in a senior executive at Reebok.  As part of the recapitalization, one of the founders exited the business and the business was energized with new leadership and professional investors.

Affliction Holdings has been recapitalized by Wells Fargo and New Evolution Ventures

FocalPoint served as exclusive financial advisor to Affliction Holdings, LLC in connection with the transaction

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“I am excited to complete this transaction with NEV and see a very bright future for Affliction. The founders of Affliction have done a terrific job building a unique brand and I see tremendous opportunities, both domestic and international, through organic initiatives and acquisitions.”

Bob Meers
CEO, Affliction