Eurazeo Brands found it’s next investment — backpack maker Herschel Supply Co.
Eurazeo has invested $60 million into the Vancouver-based company. Also putting in money was a consortium of investors that included Alliance Consumer Growth and HOOPP Capital Partners, the private capital arm of the Healthcare of Ontario Pension Plan.
WWD reported in September that the company was on the hunt for backers and working with J.P. Morgan.
Adrianne Shapira, managing director of Eurazeo Brands, told WWD Herschel has built a strong and profitable foundation and is successfully tapping into consumers’ growing interest in travel and experiences.
“They brought quality, craftsmanship, design and a badge to an otherwise predominantly functional accessory,” Shapira said.
Founded in 2009 by brothers Jamie, Lyndon, and Jason Cormack, the company has grown quickly from its base in backpacks and added luggage, headwear, accessories and apparel.
Shapira said those newer categories can be expanded on.
“There’s just so much more [to be done] in terms of travel, other silhouettes, small accessories, appropriately done apparel and hats,” she said.
The company also has a sizable online business and is venturing into retail — other avenues for growth.
Expect more from Eurazeo Brands, which is part of Eurazeo, a global investment firm with 17.7 billion euros under management.
“A theme that resonates in all of our brands is that we invest in brands that make the consumer feel something, they want to be a part of that tribe,” Shapira said.
All told, Eurazeo Brands is looking to invest $800 million in high-potential North American and European consumer companies in beauty, fashion, home, wellness, leisure and food.
Jill Granoff, chief executive officer of Eurazeo Brands, said: “We are delighted to add Herschel to Eurazeo Brands’ portfolio of differentiated consumer and retail brands with global growth potential, including NEST Fragrances, Pat McGrath Labs, Bandier, and Q Mixers. Herschel is a leader in backpacks and travel accessories, and represents a large, profitable addition to our portfolio. This is our first investment in a Canadian brand and we are confident that the company will achieve continued success.”