Golden Gate Capital Completes Recapitalization Of Venus And WinterSilks

San Francisco, CA - Golden Gate Capital announced recently that it has completed the recapitalization of Venus Swimwear Inc., WinterSilks LLC and Venus Manufacturing in partnership with the companies' existing shareholders. Venus is known for its strong beach-inspired lifestyle brand of fun and sexy swimwear, apparel and accessories and is considered the direct mail and online marketer of women's swimwear. According to the company, the women's swimwear market is one of the fastest growing segments of the $100B women's apparel market. WinterSilks, a subsidiary of Venus, is the direct marketer of silk undergarments, apparel and accessories in the U.S. and targets affluent, educated men and women over the age of 50. The aging baby-boomers constitute the fastest growing segment of the population and is expected to grow by more than 45% over the next 15 years, adds the company.

The recapitalization was completed by Golden Gate's portfolio company, Catalog Holdings Inc., which, with annual revenues in excess of $1B, is one of the direct retailers in the nation. The acquisition of Venus and WinterSilks adds two complementary brands to Catalog Holdings portfolio of specialty apparel brands which includes Spiegel, Newport News, Carabella, AB Lambdin, Norm Thompson, Solutions, Sahalie, Haband, Appleseed's, Draper's & Damon's and The Tog Shop.

"We are thrilled to welcome Venus and WinterSilks to the Catalog Holdings family," said Stefan Kaluzny a Managing Director at Golden Gate Capital. "The addition of these two growing and very profitable brands gives us a great opportunity to better serve a larger share of two of the most attractive segments of the apparel market. We are honored to have the opportunity to partner with the existing management team to continue the great success they have achieved over the past two decades. Furthermore, adding these two brands to our eleven existing catalog titles creates greater opportunities for each brand to benefit from the scale and expertise of the group."

Echoing these sentiments, Daryle Scott, Venus and WinterSilks' CEO and Chairman added, "This is a very exciting time and a positive partnership for Venus and WinterSilks. With Golden Gate Capital's expertise in specialty retail and strong financial backing we have found the best possible partner for the future. We look forward to being a part of this great family of brands and to continuing to offer the excellent merchandise and customer service that our loyal customers have come to expect."

Following the successful acquisitions of Newport News in June of 2004, Spiegel in July of 2004, Appleseed's and Draper's & Damon's in November of 2005, Norm Thompson, Solutions and Sahalie in March of 2006, Carabella and AB Lambdin in September of 2006, Haband in October of 2006, and now Venus & WinterSilks, Golden Gate Capital has become one of the leading investors in the men's and women's specialty retail market, with a focus on the direct channel. While each title will continue to operate independently, significant opportunities exist for each brand to benefit from being part of an industry-leading portfolio. Golden Gate continues to seek additional acquisitions of similar brands.

SOURCE: Golden Gate Capital