Manhattan Beachwear Acquires Apparel Ventures
Cypress, Calif.–based Manhattan Beachwear has announced its acquisition of Apparel Ventures, the Los Angeles–based swimwear maker, for an undisclosed sum.
The merger gives Manhattan Beachwear an impressive brand roster. In addition to its original brand list—which includes licenses for Kenneth Cole New York, Kenneth Cole Reaction, Nanette Lepore, Hermanny by ViX, Sofia by ViX and Hobie and its own brands, The Bikini Lab, 24th and Ocean and Maxine of Hollywood—Manhattan Beachwear now counts Apparel Ventures’ La Blanca and 2 Bamboo collections and its licensed brands—Ralph Lauren, Trina Turk, ABS, Puma and Rampage—among its offerings.
“We are now the biggest fashion swimwear company that we know of,” said Brenda West, president of Manhattan Beachwear. “But we will remain humble and committed to our customers.” West said the merger, which has been in the works since March, brings the company’s roster to 17 brands, not including private-label offerings.
The acquisition will not affect the companies’ licensing deals. On the contrary, licensors were approving of the merger and renewed or extended their licensing deals, West said. “They were all informed before the acquisition was finalized, and they have all given their support,” she said.
Apparel Ventures, founded by the late Marvin Goodman, was an attractive acquisition because its brand list complemented, but did not directly compete with, Manhattan Beachwear’s own offerings, West said.
For now, the brands will continue to operate out of their respective offices. Design staff for the brands will not change, but some backend operations, including IT and finance, will be consolidated. Executive leadership will include West and Allan Colvin, Manhattan Beachwear’s chief executive. Apparel Venture’s Jeff Pofsky and Ron Russell will remain as corporate vice presidents. Bill Singletary, Apparel Venture’s chief financial and operations officer and acting chief executive, has retired.
“This acquisition brings together two established and respected names in the swimwear industry,” said Colvin, who will lead the merged companies. “Merging the companies into one joint entity will allow us to maximize our strengths and offer our customer base an unmatched brand and product mix.”
In January, Manhattan Beachwear sold an 80 percent stake to Linsalata Capital Partners, a Cleveland-based private equity firm with a history of investing in niche apparel, including Alpha Shirt Co. and Augusta Sportswear Group. At the time of the sale, Linsalata said it “will seek add-on acquisitions that provide the opportunity to add new brands, licenses or customer relationships.”
Last November, Apparel Ventures’ founder and chief executive officer unexpectedly died of lymphoma at age 76. Dubbed by his colleagues as a pioneer of the industry, Goodman founded Apparel Ventures in 1976 and grew the business into a company with annual sales of $80 million.—Erin Barajas
