British private equity firm Lion Capital has announced a deal to invest in U.S. based clothing manufacturer American Apparel, Inc. The USD 80 million deal will be made via secured second lien notes maturing at the end of 2013, with detachable warrants.
As part of the deal Lion also receives further detachable warrants that potentially could be converted in 2016, giving them an 18% ownership stake in American Apparel.
American Apparel, Inc. (www.americanapparel.net)
American Apparel is a manufacturer, wholesaler, and retailer of upscale fashions and apparel. Based in Los Angeles, California, the company operates more than 220 retail outlets worldwide, as well as an online store and wholesale outlets. American Apparel employs more than 10,000 people, striving to be socially conscious in its employee relations and work environment.
Known for its higher than average wages and benefits, the company also provides paid time off, health care, company-subsidized lunches, bus passes, and free English instruction. Although non-American employees do not earn as much as their U.S. counterparts, they are paid at the rate of the U.S. minimum wage.
Lion Capital LLC (www.lioncapital.com)
UK based Lion Capital was founded in 2004 as a private equity firm concentrating on large consumer oriented businesses. Since its inception, Lion has invested over €4 billion in companies representing €17 billion of enterprise value.
Lion currently has two active funds, Lion Capital Fund I and Lion Capital Fund II which have a combined value in excess of €2.8 billion.