ACON Investments Sets the Stage to Revive True Religion with Exciting Acquisition

ACON Investments, along with its affiliates, has declared the purchase of a controlling interest in True Religion, a brand associated with lifestyle, clothing, and accessories recognized for its superior craftsmanship, distinctive designs, and intricate stitching. The financial specifics of the deal were not revealed.

Established in 2002, True Religion has been active in the denim and clothing sector for over twenty years. Athletes, musicians, artists, and devoted customers have consistently embraced the brand around the globe. Presently, True Religion operates as an omnichannel retailer, boasting a rapidly expanding e-commerce site, over 51 branded retail outlets, and numerous long-term wholesale partnerships. The acquisition of True Religion underscores ACON’s capability to strategically invest in well-established brands at a pivotal moment in their growth. ACON has adeptly executed a multi-faceted approach to foster growth and value in such brands.

This transaction is backed by both new and existing limited partners of ACON, including its strategic ally, SB360 Capital Partners, a Schottenstein affiliate and seasoned investor in clothing and retail. Together, ACON and SB360 intend to leverage their combined resources and industry knowledge to expedite the further development of True Religion, expand its geographical presence, and persist in diversifying its product range.

True Religion will function independently, with its headquarters remaining in Gardena, California. The company will continue to provide distinctive denim and lifestyle products to customers all over the world while exploring opportunities for collaboration and innovation within ACON’s and SB360’s varied portfolios.

The financing for this acquisition was spearheaded by the company’s existing lender, Second Avenue Capital Partners, Alpha Wave Global LP, and Sagard Credit Partners. Pillsbury Winthrop Shaw Pittman and Hogan Lovells acted as transaction and fund counsel, respectively, for ACON. Robert W. Baird & Co. and Akin Gump Strauss Hauer & Feld served as financial advisor and transaction counsel, respectively, for True Religion.

ACON Investments is an international private equity investment firm based in Washington, D.C., managing private equity funds and special purpose partnerships that invest across the United States, Latin America, and Europe. With professionals stationed in Washington, D.C., Dallas, Los Angeles, New York, Bogotá, Madrid, Mexico City, and São Paulo, ACON has overseen $7.2 billion in assets since its inception and possesses a 29-year history of successful investments.

KEY QUOTES:

“Our collaboration with ACON and SB360 marks an exhilarating new phase for True Religion. With their expertise and resources, we are ready to enhance our digital and retail capabilities, expedite our international expansion, and continue innovating our clothing range. We eagerly anticipate working together as we extend True Religion’s bold, genuine style to even more consumers globally.”

– Michael Buckley, the Company’s Chief Executive Officer and a significant minority stakeholder

“We are excited to integrate Michael, his team, and the True Religion family into the ACON portfolio.” Suma Kulkarni, Managing Partner of ACON, remarked, “True Religion has developed a unique and influential brand with a dedicated customer base and a strong connection to its core principles of authenticity, quality, and self-expression. Our alliance with SB360 will supply crucial resources needed to unlock the Company’s full potential.”

– Ken Brotman, Founding Partner of ACON

“We are thrilled to partner with the skilled team at True Religion, an iconic brand with a rich history. We seek brands that possess a strong core identity and a drive to lead in their market sector. The growth observed since 2020 has been exceptional, and by leveraging our retail expertise, we are confident we can assist the Company in continuing to prosper. Our investment underscores our belief in the Company’s growth potential and ongoing innovation in the fashion sector.”

– Aaron Miller, President of SB360