Allied Capital Corp. has invested $176.5 million for a minority stake in Wear Me Apparel, a major children's wear manufacturer. Besides its proprietary brands, Wear Me Apparel also makes kids clothes under licensed brands including characters from Disney, Nickelodeon and Marvel and national brands such as Rocawear, Ecko, Calvin Klein, Timberland and Hurley
Ares Capital Corporation and Stephens Capital Partners participated in the transaction with additional debt and equity capital. Senior management of Wear Me, led by founding Chairman and CEO Artie Rabin and President Jason Rabin, have retained a majority share of the equity of the company and will continue to actively manage the business.
Allied Capitals $176.5 million investment includes $40 million that was previously invested in the company.
“Allied Capital began its relationship with the Rabins in December 2003 when we became a subordinated debt lender to Wear Me,” said Bill Walton, Chairman and CEO of Allied Capital. “Since that time, we have seen first hand the dedication and talent of this management team as they have continued to build on the companys unparalleled leadership position in the childrens apparel market,” added Mr. Walton.
“The decision to buy an equity stake in Wear Me reflects Allied Capitals high level of confidence in the business and its management team,” said Rob Long, Managing Director of Allied Capital. “This company possesses numerous competitive advantages in the childrens apparel industry, including outstanding customer relationships, significant scale, diversity across brands and channels, highly respected design talent and an extensive global vendor network, all of which contribute to its strong market position.”
“Allied Capital has been a value-added financing partner to our company since 2003, and we are pleased to now have Allied Capital, as well as Ares and Stephens as our equity partners as we enter our next stage of growth,” said Artie Rabin, Founder and Chairman of Wear Me.