Vince Holding Corp. has acquired Rebecca Taylor and Parker from Sun Capital for $19.7 million.
The deal creates a portfolio of three contemporary yet distinct fashion brands under Vince Holding and adds $84 million in sales to the corporation.
“This is a great first acquisition,” Brendan Hoffman, chief executive officer of Vince, told WWD. “We believe we have the opportunity to double revenue for the company over time with the combination of this acquisition and the continued execution of growth initiatives under way at the Vince brand.
“While the three brands sit near each other on the contemporary floors, their price points are different. Their aesthetics are very different. They speak to different customers, which is not to say there isn’t some overlap. To the consumer, they will continue to be separate,” Hoffman said. “We will look to see what operational synergies there are.”
Hoffman said he’ll be implementing the Vince “strategic playbook” at Rebecca Taylor and Parker to build direct-to-consumer strategies, grow brand awareness and leverage core competencies across the brands. “There will be a sharing of best practices,” Hoffman said. “We will see where there are opportunities to leverage the brands together. There are no changes for now.”
Janice Sullivan serves as ceo of both Rebecca Taylor and Parker. She will report to Hoffman.
The deal comes in the aftermath of a successful turnaround of Vince led by Hoffman involving two and half years of heavy lifting, from narrowing wholesale distribution to renegotiating store leases and remaking the creative team.
Vince funded the purchase with cash for its revolving credit facility, which was increased by $20 million to $100 million simultaneously with the acquisition without any change in covenants. The deal includes $19.2 million to pay off debt and $500,000 of compensation expense. “The expansion of our revolving credit facility also provides us with additional financial flexibility to support our growth initiatives,” Hoffman said.
Rebecca Taylor and Parker are sold at high-end department and specialty stores as well as through their own e-commerce sites and in six Rebecca Taylor retail locations. Vince did not break out sales for Rebecca Taylor and Parker, though Rebecca Taylor is the larger of the two brands.
Vince, a public company traded on the New York Stock Exchange, is 75 percent owned by Sun Capital. Sales are estimated at between $295 million to $305 million this year.
Vince is known for its elevated yet understated looks inspired by the California lifestyle. The brand offers women’s and men’s ready-to-wear and footwear, and capsule collections of handbags, fragrance and home. Vince is sold at Nordstrom and Neiman Marcus among other upscale stores, and operates 48 full-price stores, 15 outlets, vince.com and a subscription business called Vince Unfold.
Growth maneuvers include adding categories through licensing, possibly entering China and Hong Kong with stores in 2020, “selectively” adding stores in the U.S, adding categories through licensing, enhancing digital capabilities and omnichannel operations, and building a bigger international business across different channels.
Rebecca Taylor officially left her namesake company last August. She had been serving more as a consultant to the brand for a year or so, rather than involved in day-to-day operations.
Rebecca Taylor is known for “signature prints, dimensional texture and modern nostalgia with a sophisticated edge.” The collection is sold at Rebecca Taylor boutiques, rebeccataylor.com and high-end department and specialty stores. Plans include opening additional Rebecca Taylor stores, growing e-commerce, accelerating international distribution, continuing to build up the rental business and extending apparel classifications.
Parker has the youngest appeal of the three brands, and emphasizes dresses rather than a full collection. It represents an opening price point on the contemporary floors of upscale department stores. The collection is designed for “the fashionable city girl,” and is available at parkerny.com and high-end department and specialty stores.
The acquisition closed on Sunday.
Asked if additional acquisitions are coming up, Hoffman replied: “We will absorb this one, learn the skill sets required to integrate companies, and continually listen for possible acquisitions.”