MONOMOY CAPITAL PARTNERS ACQUIRES
CHADWICK’S, METROSTYLE, AND CLOSEOUT CATALOG
New York – July 28, 2008 – Monomoy Capital Partners, L.P., a New York private equity fund that makes controlling investments in middle market companies, announced today that it has acquired the assets and operations of the Missy Group from Redcats USA, Inc. a subsidiary of the Redcats Group, Inc., a business unit of the multinational French holding company PPR, S.A. The new company will be named the Women’s Apparel Group, LLC.
Targeting women between the ages of 25 and 55, the Women’s Apparel Group is a leading catalog and internet retailer of value-priced clothing and accessories marketed under the Chadwick’s, metrostyle and Closeout Catalog Outlet brands. Chadwick’s sells high-quality suits, dresses, pants, swimwear, shoes, and fashion accessories; metrostyle sells a value-priced urban fashion line; and Closeout Catalog provides Chadwick’s and metrostyle merchandise at significant markdowns.
The Redcats transaction is Monomoy’s fifth acquisition of a non-core business unit from a public company under its debut private equity fund. Monomoy has recently completed similar acquisitions of under-performing corporate orphans from Alcoa, Inc. (NYSE: AA), Dover Corp. (NYSE: DOV), and Lancaster Colony Corp. (NASDAQ: LANC). “In each of these deals, Monomoy has successfully partnered with a large corporation, often in difficult situations, allowing them to divest assets quickly, efficiently and with minimum business disruption,” said Dan Collin, a Monomoy Partner. Monomoy closed the Redcats transaction 30 days after signing an initial letter of intent.
The Women’s Apparel Group has more than $300 million in annual sales and employs 600 team members in four locations: a corporate headquarters and warehouse in West Bridgewater, Massachusetts; a distribution center in Taunton, Massachusetts, and retail stores in Brockton, Massachusetts and Nashua, New Hampshire. The Group designs Chadwick’s and metrostyle products in Massachussetts; sources the products throughout the world; and fulfills catalog and internet sales through its warehouse and distribution center. The Company’s hourly employees are represented by UNITE HERE.
Effective immediately, Monomoy has appointed Chas Hepler as the Chief Executive Officer of the Women’s Apparel Group and David Myles as Chief Operating Officer. Messrs. Hepler and Myles join the company from SD Retail Consulting, Inc., a leading business consulting group in direct retail, and both bring more than 20 years of deep and varied retail experience to the new company.
“The acquisition of Chadwick’s and metrostyle offers a tremendous opportunity to strengthen these great brands and create substantial value in an important and growing segment of the women’s clothing and fashion industry,” said Mr. Hepler. “Our customer base has remained extremely loyal in a difficult retail environment, and we can continue to build a great business here by engaging all of our employees and providing our customers with consistently superior service and products.”
Richard Porter and Travis Nelson of Kirkland & Ellis, LLP represented Monomoy in the acquisition; Crowe Chizek provided financial and accounting diligence; and SD Retail Consulting, Inc. provided strategic business review and advice.
# # #
About Monomoy Capital Partners, L.P.
Monomoy Capital Partners, L.P. is a $280 million private equity fund that makes controlling investments in middle market companies. The Fund has completed 17 transactions in just over two years in the smaller end of the middle market and currently owns nine business that collectively employ more than 5,500 people. Monomoy implements customized business improvement programs in all portfolio companies that reduce operating expenses, increase profitability and encourage meaningful growth. For additional information on Monomoy and its portfolio companies, please visit www.mcpfunds.com.
Contact:
Elizabeth Fluke
Sloane & Company
efluke@sloanepr.com
212-486-9500
