Press release, July 2, 2007
BERKSHIRE PARTNERS INVESTS IN MASAI GROUP INTERNATIONAL, GLOBAL PROVIDER OF MBT PHYSIOLOGICAL FOOTWEAR
BOSTON, MA. - July 2, 2007 - Berkshire Partners LLC, a Boston-based private equity firm, today announced that they have made an investment in Masai Group International to help accelerate and support the next phase of the Company's growth. Masai Group International distributes shoes under the Masai Barefoot Technology ("MBT") brand. MBT is the leading global provider of physiological footwear. Current shareholders Klaus Heidegger, a former world-class skier and past owner of Kiehl's, and Hermann Oberschneider, a successful Austrian sports and tourism entrepreneur, have retained a majority stake in MBT.
Initially developed for orthopedic applications by Swiss engineer Karl Muller, MBT's shape and structure, with the elliptical section or "Masai Sensor" underneath the heel, creates a natural instability underfoot that stimulates and exercises the body's supporting muscle system.
Benefits of wearing MBTs include reduced impact on joints, better posture, increased caloric burn and muscle toning due to increased buttock, thigh and abdominal muscle activity, as well as a significant decrease of stress and pressure on the hip and knee joints.
The product is available in over 20 countries including Germany, the U.K. and the United States.
"In an increasingly health conscious world, MBT's differentiated product offers unique health and fitness benefits to an extremely broad audience," said Michael Ascione, Managing Director for Berkshire Partners. "We believe there is tremendous opportunity to increase brand awareness and further expand the product line worldwide. We are thrilled to be partners with Mr. Heidegger, Mr. Oberschneider and Mr. Kraihamer in growing this exciting brand."
"MBT has tremendous potential and is already the leader in the new category of physiological footwear. Berkshire Partners' experience, knowledge and resources in the consumer product and retail sectors will contribute to the achievement of our long term growth strategies," said Norbert Kraihamer. "We are excited and look forward to working closely with Berkshire Partners." Prior to joining MBT, Kraihamer was a board member and Marketing and Sales Director for Red Bull. During his 11 year tenure there, Kraihamer led the international roll-out of Red Bull from two to 126 countries worldwide.
William Blair & Company acted as the Company's financial advisor in the transaction. Weil, Gotshal & Manges LLP was legal counsel to Berkshire Partners while Baker & McKenzie provided legal counsel to the Company.
About Masai Group International
Masai Group International is the leading global provider of physiological footwear: footwear that has a positive effect on the entire body. Masai Group International markets and distributes shoes to over 20 countries under the Masai Barefoot Technology ("MBT") brand. Since the Company's founding in 1998, MBT has sold more than 4.5 million pairs worldwide. MBT is based in Romanshorn, Switzerland. For additional information, visit www.swissmasai.com.
About Berkshire Partners
Berkshire Partners has invested in mid-sized private companies for more than 20 years through seven investment funds with aggregate capital commitments of approximately $6.5 billion. Berkshire seeks companies with acquisition values between $200 million and $2.0 billion and in a given transaction makes equity investments of approximately $50 million to $500 million. Berkshire has developed specific industry experience in several areas, including consumer products, retailing, business services, transportation, energy, manufacturing and communications. Berkshire's consumer and retail investments include Aritzia, Bare Escentuals, Carter's, Citizens of Humanity, Party City and Waterworks. The firm's transactions have included acquisitions, growth equity investments, and turnarounds in both the U.S. and abroad. Over the past two decades, Berkshire has been an investor in 90 operating companies with more than $19 billion of acquisition value and combined revenues in excess of $21 billion. For additional information, visit www.berkshirepartners.com.