Crestview Partners, out marketing its latest fund, is acquiring NYDJ Apparel, whose products include Not Your Daughter’s Jeans, a Crestview spokesman confirmed.
Seller Falconhead Capital, a New York private equity firm, acquired a controlling stake in NYDJ Apparel in September 2008.
It’s unclear how much New York-based Crestview is providing. The firm’s investment is coming from its third fund, according to an FTC filing. Maybrook Capital Partners is also investing, the spokesman said.
“Falconhead, Crestview and Maybrook can confirm that they have signed a definitive agreement under which Crestview and Maybrook will purchase NYDJ from Falconhead,” a statement provided by the Crestview spokesman said. “This agreement is subject to various closing requirements. We have no further comment at this time.”
The deal is expected to close by the end of the year, the spokesman said.
In 2008, Falconhead reportedly paid $100 million for NYDJ. The Rudes family, which founded the company, retained a stake. Falconhead received a dividend from the denim apparel company in 2011. Falconhead could not be reached for comment.
Lisa Rudes-Sandel and her father George Rudes started NYDJ Apparel, of Vernon, Calif., in 2003. The company’s Not Your Daughter’s Jeans brand targets women aged 35 and older. The jeans are advertised to make a woman “look and feel a size smaller.”
Two years ago, NYDJ Apparel was up for sale in an auction process that failed. Morgan Stanley advised. The company was generating $40 million in annual EBITDA at the time and was trying to sell for 8x to 9x, press reports said.
Crestview, which was founded by former executives from Goldman Sachs and Morgan Stanley in 2004, is seeking $3 billion for Crestview Partners III LP, peHUB reported in November. The firm targets the middle market and invests in financial services, media, healthcare and energy sectors. NYDJ is the firm’s first apparel/retail deal.
Officials for NYDJ Apparel did not return calls for comment.
Photo courtesy of NYDJ