Crystal Financial provided financing to Los Angeles-based buyout firm Gores Group to support its acquisition of Mexx International. The Gores Group bought the mid-market apparel retailer from Liz Claiborne.
Crystal Financial, LLC announced today that it has provided financing to The Gores Group, a leading Los Angeles-based private equity firm, to support its recent acquisition of Mexx International, a mid-market apparel retailer in Europe and Canada, from Liz Claiborne.
This is the second Canadian transaction funded by Crystal in the past year. In June of 2011, Crystal co-agented a transaction for Petrowest that included a $42.8 million first lien term loan secured by machinery and equipment, spare parts inventory and all other non-current assets, and a $5.1 million delayed draw term loan to finance additional equipment needs. Petrowest is a Western Canadian-based construction company that provides road building and infrastructure services to municipalities and companies in the oil and gas, energy services and forestry industries.
“This was a complex deal because it involved extensive international operations with all collateral and cash flow domiciled outside of the U.S.,” said Steve Krawchuk, managing director at Crystal Financial. “It also was affected by the uncertainties of the divestiture of Mexx by Liz Claiborne. These unusual circumstances are Crystal’s bread and butter.”
“With its complications and unusual collateral, this transaction really is the picture-perfect deal for Crystal Financial,” concurred Colin Cross, senior managing director at Crystal Financial. “We are pleased to help The Gores Group take advantage of opportunities to re-activate the strong positive attributes of the global Mexx brand.”
Mexx is an international lifestyle brand that designs clothes and accessories for men, women and children. Mexx Canada operates 90 locations and sells its clothing line through both wholesale and retail channels. Its key wholesale customers are The Bay and Winners.
About Crystal Financial
Crystal Financial is an independent commercial finance company that provides senior and junior secured term asset-based and cash flow loans ($10 million to $150 million) to middle-market companies, either as a direct lender or in partnership with banks, other ABL lenders or private equity investors. The company has a unique ability to lend on alternative or unusual assets such as intellectual property or brand names. Its team of experienced, responsive professionals have underwritten, closed and managed more than $20 billion in secured debt commitments across a wide range of industries. For more information, please visit www.crystalfinco.com .
About The Gores Group, LLC
The Gores Group, LLC is a private equity firm focused on acquiring controlling interests in mature and growing businesses which can benefit from the firm’s operating experience and flexible capital base. The firm combines the operational expertise and detailed due diligence capabilities of a strategic buyer with the seasoned M&A team of a traditional financial buyer. The Gores Group, which was founded in 1987 by Alec E. Gores, has become a leading investor having demonstrated over time a reliable track record of creating substantial value in its portfolio companies alongside management. Headquartered in Los Angeles, the Gores Group maintains offices in Boulder, CO, and London.