Cypress, Calif.-based women's swimwear maker Manhattan Beachwear sold an 80% stake to Linsalata Capital Partners, a Cleveland-based private equity firm. Manhattan Beachwear, which licenses the Kenneth Cole, Hermanny by Vix, Sofia by Vix, Hobie and Split labels, has annual sales of $65 million, according to Linsalata.
Founder and chief executive Allan Colvin and his management team “invested alongside [Linsalata] and will continue in their current roles,” a release from the investment firm said.
In the past, Linsalata has invested in niche apparel, including Alpha Shirt Company and Augusta Sportswear Group. Linsalata said the goal of the acquisition is to build on Manhattan Beachwear's success with its retail partners, which include large national department stores, mass merchants and specialty swimwear outlets, and become the leading supplier of women's swimwear by providing unique design capability and high quality products supported by consistent execution and low cost global supply chain.
Growing Manhattan Beachwear's portfolio is another goal. The company will seek add-on acquisitions that provide the opportunity to add new brands, licenses or customer relationships, Linsalata said. “We are pleased to be partnering with [Linsalata] as we enter a period of aggressive expansion. Their experience in the sector will undoubtedly be helpful as we manage our growth going forward,” Colvin said in a statement.
Eric Bacon, senior managing director at Linsalata, said, “We are excited to be working with this team and in this space coming off strong performance despite the weak economy. Women's swimwear has proved recession-resistant and the company, in particular, has strong momentum.”
