L Catterton-owned Seafolly makes South America bolt-on
L Catterton Asia, the Asia arm of global consumer-focused GP L Catterton, has purchased Colombian beachwear brand Maaji in a bolt-on acquisition for its Australian swimwear brand Seafolly.
Financial details of the transaction were not disclosed, though The Australian Financial Review put the size of the investment at about A$50 million ($38 million). In a release L Catterton said Seafolly and Maaji will combine to form a leading global beach lifestyle brand, introducing new product categories such as sportswear and accessories.
L Catterton was formed last year through the merger of L Capital, a private equity firm sponsored by luxury goods giant LVMH, with consumer-focused US GP Catterton. It claims to be the largest global consumer-focused investment firm, with assets across North America, Europe, Asia and Latin America. In Asia the firm invests from L Capital Asia’s latest vehicle, which closed in 2013 at $950 million plus an unspecified GP contribution.
The Seafolly investment predates the merger: L Capital bought a controlling stake in the company in 2014 for an undisclosed amount. Seafolly, founded in 1975, produces a range of swimwear, casual clothing and accessories. Having attained a 40% share of the swimwear market, CEO Anthony Halas welcomed the GP as a backer of his desired international expansion.
Seafolly had targeted Maaji for acquisition for some time, but prior to 2014 lacked sufficient understanding of the South American market to pursue a deal. The purchase gives Seafolly entry into the region's lucrative swimwear market through a highly-regarded brand and a local retail pipeline.
“When we invested in Seafolly, we had at that stage envisioned a roll-up strategy to aggregate a portfolio of high quality beachwear brands in a market segment that is large, growing, but highly fragmented,” said Ravi Thakran, chairman and managing partner of L Catterton Asia. “Maaji was the type of unique brand that we wanted to bring on board. This combination will drive many synergies, including geographic expansion, retail rollout and product sourcing.”
Seafolly has 32 concept stores across Australia, the US and Singapore. In its next phase of growth the company plans to expand into Southeast Asia and China. Entry into the Middle East and Europe is also expected once Seafolly has consolidated its position in the US and Asia.
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