When Michael Kramer walked into Scotch & Soda’s first U.S. store in Manhattan’s SoHo neighborhood, he was blown away. “I had a coronary. I was ‘Oh my God, the product is amazing,’” said Kramer, president and chief executive officer of Kellwood Co. “I called them and they weren’t for sale, but I just kept banging on their door,” he said. After six months of negotiations, an affiliate of Sun Capital Partners and Kellwood reached a deal Monday to acquire the Amsterdam-based fashion brand.
“They are true designers that keep innovating,” said Kramer, noting the deal is expected to close next month. Terms of the private transaction weren’t disclosed, and the Scotch & Soda founders and management team will continue in their respective roles. Kramer said Scotch & Soda’s business generates wholesale volume of 250 million euros, or $350 million at current exchange, and represents Kellwood’s biggest and first international acquisition. “It’s huge and it’s hugely profitable,” Kramer said.
A Stella McCartney sketch of a custom dress made from protein-based silk in partnership with biotech lab Bolt Threads. The dress will be displayed at The Museum of Modern Art's upcoming design exhibition, "Items: Is Fashion Modern?"