March 6, 2012 — Affliction Holdings, LLC, together with its affiliated brands and companies (“Affliction” or the “Company”) 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, LLC (“FocalPoint”) 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. (“Throwdown”). Terms of these transactions were not disclosed.
Based in Seal Beach, California, Affliction is a branded apparel company that is defined by its Live Fast™ tagline, symbolizing an adrenaline-filled lifestyle. Throwdown, one of the global leaders 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. 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.”
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, LLP represented the Company as legal counsel. Dechert LLP represented NeV as legal counsel. Integrity Square LLC represented Throwdown as financial advisor. Park Lane advised NeV as financial advisor.
About Affliction (www.afflictionclothingstore.com)
Founded in 2005, Affliction has evolved into a diversified family of brands, defined by a loyal customer base, with innovative designs, styles and cuts. The Company’s clothing appeals to enthusiasts of many different extreme sports (including skate boarding, snowboarding, MMA, surfing, NASCAR and motocross) as well as rock ’n roll music. The Company’s design team has successfully proven its ability to introduce new brands and product line extensions.
About Throwdown (www.throwdown.com)
Founded in 2002, Throwdown is a global leader in impact sports. With its roots in providing cages, racks, rings, ramps, equipment and gear across impact and action sports (including serving as the official provider to UFC Gyms), Throwdown has leveraged its brand into soft goods including apparel and accessories.
About New Evolution Ventures, LLC (www.nev.com)
New Evolution Ventures, LLC is an investment partnership focused on the health, fitness and wellness industries as well as related lifestyle brand companies. Its investing activities encompass multiple brands that incorporate health clubs and apparel, as well as nutrition, media, content and technology. NeV seeks to continue investing in and developing its existing NeV brand portfolio as well as making additional investments in its targeted industry sectors. NeV was founded in 2008 by Mark Mastrov and former 24 Hour Fitness executives Jim Rowley and Mike Feeney. Prior to NeV, Mark founded 24 Hour Fitness Worldwide in 1983, which he grew to the world’s largest fitness company with more than 420 clubs in the United States and Asia and revenues in excess of $1.5 billion at the time of its sale in 2005.
About Wells Fargo Capital Finance
Wells Fargo Capital Finance is the trade name for certain asset-based lending, accounts receivable and purchase order finance services of Wells Fargo & Company and its subsidiaries, and provides traditional asset-based lending, specialized senior secured financing, accounts receivable financing, purchase order financing and channel financing to companies across the United States and internationally. Dedicated teams within Wells Fargo Capital Finance provide financing solutions for companies in specific industries such as retail, software publishing and high-technology, commercial finance, staffing, government contracting and others.
About FocalPoint Securities, LLC
FocalPoint is an independent investment bank with offices in Los Angeles and Chicago that specializes in mergers and acquisitions, private placements (both debt and equity), financial restructurings and distressed transactions. The firm’s primary focus is on middle-market companies.
For further information regarding our services and our work on the Affliction transaction, please contact Duane Stullich at 310-405-7070.