Press release, February 1, 2006
Citizens of Humanity Announces A Partnership with Berkshire Partners
Boston, MA - February 1, 2006 - Citizens of Humanity, a leading designer and distributor of premium denim and other apparel, has announced a partnership with Boston-based private equity firm, Berkshire Partners. Berkshire Partners' investment will support the continued growth of Citizens of Humanity. Terms of the transaction were not disclosed.
Headquartered in Huntington Park, California, Citizens of Humanity designs and creates jeans and other apparel known for their classic style, vintage look, outstanding quality and superior fit. The Company's denim line, which comes in a variety of fits, colors and levels of distress, can be found at upscale specialty clothing boutiques and other high-end retail stores.
CEO Jerome Dahan founded Citizens of Humanity in 2003 and the Company quickly grew to be a major influence in the denim jeans business. Dahan is largely credited with creating denim designs that are more comfortable to wear and more flattering in both styling and fit. Over the past six months, Citizens of Humanity has attracted the attention of a number of potential investors, including an unsolicited offer from a large strategic buyer.
"Partnering with Berkshire Partners enables me to continue my role as CEO and designer of Citizens of Humanity, and provides the Company with the benefit of Berkshire's financial resources and strategic guidance," stated Jerome Dahan, CEO and Founder of Citizens of Humanity. "Berkshire's extensive expertise in the retail and consumer products industry will also bring fresh perspective to ensure the growth and longevity of the Company." Recent retail investments by Berkshire Partners include Aritzia, Bare Escentuals, Carter's, Party City and Waterworks.
Citizens of Humanity will continue to expand its core women's lines and its men's line, which was launched in July 2005. Citizens of Humanity also offers a women's knit top line and a maternity jeans line. Prior to founding Citizens of Humanity, Dahan was a co-founder and the original designer of 7 For All Mankind and head designer at Lucky Brands.
"Jerome Dahan has consistently produced superior products and innovative designs, and has built a recognized industry leader in the premium denim market," stated Larry Hamelsky, Managing Director at Berkshire Partners. "The Company is uniquely positioned for continued success, and Berkshire Partners is very excited to work with Jerome and his team to realize the potential of the Citizens of Humanity brand."
Marc Cooper and Cathy Leonhardt of Peter J. Solomon represented Citizens of Humanity in the equity transaction. CapitalSource Finance LLC provided the senior debt financing.
Citizens of Humanity
Citizens of Humanity is a leading designer and distributor of premium denim and other apparel. The Company was founded by Jerome Dahan. Before he founded Citizens of Humanity, Jerome Dahan was a co-founder and the original designer of 7 For All Mankind, and the head designer at Lucky Brands. The Company is headquartered in Huntington Park, California. For more information, visit www.citizensofhumanity.com
About Berkshire Partners LLC
Berkshire Partners has invested in mid-sized private companies for more than 20 years through six investment funds with aggregate capital commitments of approximately $3.5 billion. Berkshire seeks companies with acquisition values between $200 million and $1 billion and in a given transaction, makes equity investments of $50 million to $250 million. Berkshire has developed specific industry experience in several areas including industrial manufacturing, consumer products, transportation, communications, business services, and retailing and related services. The firm's transactions have included acquisitions, growth equity investments, and turnarounds. Over the past decade, Berkshire has been in investor in over 85 operating companies with more than $13.0 billion of acquisition value and combined revenues in excess of $20.0 billion. For additional information, visit www.berkshirepartners.com.