SAXX Underwear Co. Ltd. announced that it has received a strategic investment from TZP Group, a multi-strategy private equity firm, through TZP Capital Partners III, L.P.
NLS Group Holdings Inc. (“NLS”), led by Krystal Growth Partners, which invested in SAXX in April 2010, will retain a significant minority interest in the Canadian men’s underwear brand. As part of the transaction, Brentwood Associates, a Los Angeles-based private equity firm that invested in SAXX in December of 2016, will exit its investment. The terms of the transaction were not disclosed.
With over 5,800 retailer partner doors across North America, the UK, Europe, Japan, and Australia, SAXX is actively extending its global reach.
Since its founding in 2006, SAXX said it has seen “rapid sales growth of 26 percent compounded annually over the last five years, with e-commerce sales growing at 60 percent year-over-year in 2020 alone.”
As part of the investment, TZP will help support the company’s operations, growth strategy and expansion into new markets while building out its current presence across the U.S. and Europe. SAXX and TZP will work together to strategically deepen customer relationships and increase brand awareness, while also exploring new product categories and retail distribution opportunities.
“Creating the iconic BallPark Pouch was the beginning of a new era in men’s underwear and epitomizes our company’s obsession with comfort and innovation. Since then, we have set the standard in this category and become the leading men’s premium underwear brand in Canada,” said Wendy Bennison, CEO, SAXX. “We know that there is a significant opportunity for our business, beyond what we have accomplished to date and beyond our borders, and we are excited to be partnering with TZP on this next chapter of growth. This transaction supports the significant opportunity we see to strengthen our leadership position as the best in solving male discomfort and to further expand the SAXX brand globally. TZP’s expertise in brand expansion and digital transformation, as well as their track record of driving omnichannel growth for leading consumer brands, make them the ideal partner to bring our coveted, patented technology to the world.”
“Since its founding, SAXX has pioneered technical performance in men’s underwear and disrupted a category through innovative and technical design that didn’t exist previously,” said Dan Galpern, partner, TZP. “Through its patented technology and unique design, SAXX offers a truly differentiated product with substantial growth opportunities into both new categories and markets. We are excited to partner with the exceptional team at SAXX as they continue to build a world-class brand and execute on the opportunities ahead.”
Photo courtesy SAXX/Facebook