True Religion Apparel Inc. entered an agreement to be acquired by TowerBrook Capital Partners in a transaction valued at $835 million.


Under the terms of the agreement, TowerBrook will acquire all of the outstanding share of True Religion common stock for $32 a share in cash, representing a premium of 52 percent to the denim firm’s share price on Oct. 9, 2012 before it said it had begun to explore strategic alternatives.

True Religion’s board has already approved the merger agreement and recommends that shareholders vote in favor of the transaction. If approved by shareholders, the deal is expected to close in the third quarter of 2013.


Seth Johnson, a lead director at the denim company, said, “After a thorough review of strategic alternatives to enhance shareholder value, we are pleased to reach this agreement, which provides our shareholders with immediate and substantial cash value representing a significant premium… Having considered alternatives over a seven month period, the special committee believes TowerBrook’s $32.00 per share cash offer for the company is in the best interest of our shareholders.”

Lynne Koplin, interim chief executive officer and president of True Religion said, “At this critical inflection point in our business, global growth and product development effort, TowerBrook’s support and experience will be a true differentiator. TowerBrook’s long-term approach toward investment and brand stewardship will best enable True Religion to maintain its leadership position in the marketplace.”

Andrew Rolfe, managing director of TowerBrook, said, “True Religion is an established, high-end brand with a strong retail network and a loyal following. We are excited to combine our retail and apparel expertise with Lynne and the True Religion team to help the company with brand building and international opportunities.”

TowerBrook’s previous investments in the consumer retail space include Jimmy Choo, Odlo, BevMo! and Phase Eight.

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