Wells Fargo Trade Credit Provides Financing for Affliction Recap
Affliction Holdings, together with its affiliated brands and companies, was recapitalized by an investor group led by New Evolution Ventures, LLC (NeV) and Bob Meers. Wells Fargo Trade Credit provided the debt financing and FocalPoint Securities served as the financial advisor to Affliction with respect to the transaction. In a simultaneous closing, Affliction acquired a controlling interest in Throwdown Industries, Inc. Terms of these transactions were not disclosed.
Based in Seal Beach, CA, Affliction is a branded lifestyle apparel company that is defined by its Live Fast? tagline, symbolizing an adrenaline-filled lifestyle. Throwdown, is a provider in impact sports, has its roots in equipment and gear and recently leveraged its brand into soft goods, including apparel and accessories.
Meers, previously the CEO of Reebok and lululemon athletica, joined Affliction as CEO in August 2011 and will continue to lead the company post-transaction. Meers stated, “I am excited to complete this transaction with NeV and see a very bright future for Affliction and Throwdown. 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.”
“Bringing this investor group together with Affliction made all the sense in the world,” according to Duane Stullich, managing director at FocalPoint. “Bob and NeV truly understood the potential of Affliction and Throwdown and I am very confident that they will prove successful in taking both businesses to new heights.”
Integrity Square LLC, a New York based advisory firm focused on the health and wellness sector and active lifestyle, represented Throwdown as financial advisor, and Andrew Kline and Frederico Lapenda of Park Lane, a Los Angeles-based investment bank focused on the sports industry, served as financial advisors to NeV.
Based in Northern California, New Evolution Ventures (NeV) is a private equity firm focused on the acquisition, development and operations management of fitness, media and sports entities both domestically and internationally.