PE-backed Alex Apparel acquires SL Fashions Group

Alex Apparel, which is backed by Atlantic Street Capital, has acquired New York City-based SL Fashions Group, a maker of dresses and separates. No financial terms were disclosed.

PRESS RELEASE

NEW YORK, April 3, 2017 – Alex Apparel Group, a leading branded designer of better priced social dresses and separates under the brand name ALEX EVENINGS, today announced the acquisition of SL Fashions Group, a leading designer of moderate priced social dresses and separates.

Headquartered in New York City, SL Fashions designs, sources, and distributes branded day and eveningwear dresses and separates sold under the SL, JR Nites, and Ignite brand names. The company was founded in the 1970s by Steve Grabow. In addition to being sold in leading department stores, the company also produces private-label products and is known by its customers for quality, value and reliability.

Colleen Kelly, Chief Executive Officer of Alex Apparel, said, “We currently design dresses for women seeking sophisticated and classic eveningwear at affordable prices who shop primarily in the department store channel. Our two companies and cultures are very compatible and the addition of SL to the Alex family of brands will allow us to rapidly scale our businesses and develop new markets across the entire value-priced segment of social occasion eveningwear. In addition, SL will enable us to further develop important sales channels, including e-commerce, specialty chains, and boutiques.”

Mitchell Grabow, President of SL, who will continue in that role and also become Executive Vice President of Business Development for Alex Apparel, said, “Alex and SL both focus on designing a classic aesthetic, but at non-competing price points. I look forward to working with Colleen and the team at Alex to focus on a number of exciting growth initiatives that will dramatically develop the business globally.”

Peter Shabecoff, Managing Partner of Atlantic Street Capital, which acquired Alex in 2011, said, “Colleen and her team have greatly strengthened the relationship with many of the company’s key customers, making Alex Evenings a leader in the classic eveningwear market. We are pleased with the company’s continuing improvements and we are very excited about the growth opportunities that will come from the acquisition of SL Fashions.”

About Atlantic Street Capital
Atlantic Street Capital is a private equity firm that invests in middle market companies with between $4 million and $12 million in EBITDA. The firm invests in fundamentally sound companies that will benefit from capital investment and value-adding strategic and operational initiatives. Atlantic Street Capital’s partners are hands-on investors who work closely with management to unlock their business’ underlying value and help them succeed. The firm is currently investing from Atlantic Street Capital III, LP. For more information, visit www.atlanticstreetcapital.com.

About Alex Apparel Group, Inc.
Alex Apparel designs, sources and distributes branded eveningwear dresses and separates to the better priced segment of the women’s apparel industry. The company’s classic designs are sold under the Alex Evenings brand and are distributed in over 3,400 leading department stores and specialty boutiques nationwide.