WFCF, Trade Capital Provides Debt Financing for Affliction Recap
Affliction Holdings, LLC, together with its affiliated brands and companies, has been recapitalized by an investor group led by New Evolution Ventures, LLC (NeV) and Bob Meers. Wells Fargo Capital Finance, Trade Capital Division 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 apparel company that is defined by its Live Fast tagline, symbolizing an adrenaline-filled lifestyle. Throwdown, a provider in impact sports, has its roots in equipment and gear and recently leveraged its brand into soft goods, including apparel and accessories.
Bob 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.
Brent Leffel, president of NeV, added, “We are pleased to partner with the remaining founders of Affliction and Bob Meers, who I have known for many years. Affliction is a well-positioned growth platform, now augmented by Throwdown, which provides inroads into the sports performance channel. The potential of this business, under the leadership of Bob, is limitless.”
“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.”
Greenberg Traurig represented the company as legal counsel. Dechert represented NeV as legal counsel. Integrity Square represented Throwdown as financial advisor. Park Lane advised NeV as financial advisor.
New Evolution Ventures, LLC is an investment partnership focused on the health, fitness and wellness industries as well as related lifestyle brand companies.
FocalPoint is an independent investment bank that specializes in mergers and acquisitions, private placements (both debt and equity), financial restructurings and distressed transactions.