NewSpring Mezzanine Capital, the dedicated mezzanine arm of NewSpring Capital, has made a $9.6 million debt and minority equity investment in South Moon Sales Inc. NewSpring partnered with JPB Capital Partners in the deal. Ocean City, Maryland-based South Moon provides men’s and women’s clothing, swimwear, accessories, jewelry, and gifts for the home.
Radnor, PA – March 29, 2016 – NewSpring Capital, a family of private equity funds providing growth and expansion capital, announced today that NewSpring Mezzanine Capital (“NewSpring”), the firm’s dedicated mezzanine fund, has made a $9.6 million debt and minority equity investment in South Moon Sales, Inc. (“South Moon Under”). NewSpring partnered with JPB Capital Partners, a Columbia, MD-based equity investor. The proceeds will be used to expand company-owned stores into new adjacent markets, enhance the Company’s eCommerce platform and experience, build its private label product offering, and improve overall store-level execution and productivity.
Founded in 1968 as a surf shop in Ocean City, MD by Frank Gunion, South Moon Under quickly became the premier surf and swim store in Maryland. From these roots, the Company has transformed from a surf shop to a unique and contemporary fashion retailer operating 24 stores from Virginia to Connecticut. Offering a curated selection of branded and private labels and trend-right merchandise, South Moon Under delivers a unique experience and service in a fun, customer-centric atmosphere.
The former executive management team of White House|Black Market—Michael Smith, Patricia Smith and Rod Olson—have partnered with NewSpring and JPB on this investment, having played an important role in the development and leadership of White House|Black Market. Following the transaction, Michael will be South Moon Under’s Chief Executive Officer, Patricia its Chief Creative Officer, and Rod its Chief Operating Officer. Frank Gunion, the original founder of the brand, will transition his role from a day-to-day President to a minority owner and member of the Board of Directors.
“We are excited to partner with JPB and the new management team of South Moon Under to help continue the growth of their brand,” said Greg Barger, NewSpring General Partner. “The Company, under the terrific leadership of Frank Gunion, has managed to profitably navigate fashion trends for over 45 years. Now, with the additional capital and leadership of JPB and the former White House|Black Market executive team, South Moon Under is well-poised for continued growth and success.”
“I am honored to have the opportunity to lead a strong and well established brand, such as South Moon Under,” said Michael Smith, the new Chief Executive Officer of the Company. “I look forward to the opportunity to lead South Moon Under from a brand primarily known in the Mid-Atlantic to a true national retailer.”
About South Moon Under
South Moon Under is a fashion forward company that offers an eclectic mix of men’s and women’s clothing, swimwear, accessories, jewelry, and gifts for the home. Sold in over 24 stores and online at www.southmoonunder.com, South Moon Under gives customers the opportunity to experience the excitement of artfully and confidently expressing their individual style. For more information, visit www.southmoonunder.com.
About NewSpring Capital
NewSpring Capital is a leading provider of private equity capital focused in the Mid-Atlantic region. The Firm manages over $1billion across four distinct strategies covering the spectrum from growth equity and control buyouts to equity and mezzanine debt. NewSpring Capital combines deep operating knowledge with financial and investing expertise to provide growing companies the financial resources, advice, network of contacts and strategic partnerships necessary to develop their businesses into market leaders. This philosophy has been a key tenet of NewSpring Capital’s approach and the success of its current and former portfolio companies demonstrates the Firm’s commitment. To learn more about NewSpring Capital, please visit www.newspringcapital.com.