NEW YORK — The deal to acquire Maidenform Inc. by Los Angeles-based Ares Corporate Opportunities Fund, L.P., a unit of Ares Management LLC, was completed late Tuesday.
A purchase price was not disclosed; however, sources close to the deal estimated the price was $215 million.
Oaktree Capital Management LLC, an L.A.-based investment adviser that manages more than $29 billion, will continue to be a significant minority shareholder in Maidenform, and in connection with the purchase, Maidenform obtained a new $180 million senior credit facility through BNP Paribas, which led the debt financing for the buyout.
The deal for Ares Corporate Opportunities Fund to acquire Maidenform was announced in March.
Officials at Ares and Oaktree Capital couldn’t be reached for comment at press time.
Maidenform, the 82-year-old bra specialist, generated wholesale revenues of close to $300 million in 2003 and is expected to yield annual volume of $300 million this year, said Tom Ward, president and chief executive officer of Maidenform.
Ward said Tuesday, “We are very enthusiastic about our new partnership with Ares. I think it will be very beneficial for us and our retail customers going forward. We are in the process of putting together a strategic plan that we feel will generate a lot of growth in our core brands, and at the same time, we are looking at adding brands that will help us penetrate additional retail accounts.” Among the company’s core brands are Maidenform, Lilyette and Flexees.
Maidenform emerged from bankruptcy in July 1999, and has been on the selling block since 1997. Firms such as VF Corp. and Kellwood have previously made plays for the brand.
Ares Management LLC is an L.A.-based investment firm that manages more than $4.5 billion in assets.