L Catterton to form largest independent swimwear business

L Catterton, the world’s largest consumer-focused private equity firm backed by luxury conglomerate LVMH, is looking to create the largest independent swimwear and beach lifestyle business through its investments in Seafolly and Maaji.

The global swimwear and beach lifestyle platform will combine Australian swimwear label Seafolly, which the group acquired a controlling interest in 2014, and the leading Colombian beachwear brand Maaji, which it has just newly acquired.

The Asian division of the equity firm, L Catterton Asia confirmed the purchase of a controlling stake in the Columbia-based Maaji from co-founders Manuela and Amalia Sierra, and added that it will be the controlling shareholder of the combined business, with the founders of both businesses continuing as minority shareholders.

Chairman and managing partner of L Catterton Asia, Ravi Thakran, said: "With this unparalleled combination of Seafolly and Maaji, we look to grow our portfolio and create the largest independent house of beach lifestyle brands. The two brands are market leaders from two large, but distinct beach destinations – Australia and Latin America, with each possessing a very unique style and positioning.

“When we invested in Seafolly, we had at that stage, envisioned a roll-up strategy to aggregate a portfolio of high quality beachwear brands in a market segment that is large, growing, but highly fragmented. Maaji was the type of unique brand than we wanted to bring on board. This combination will drive many synergies, including geographic expansion, retail rollout and product sourcing. This combination also allows us to play on our strengths as being part of the world's largest consumer-focused private equity firm as we were able to effectively look at a combination of businesses from two very different geographies with the support of our Latin America team."

L Catterton added that it plans to expand both swimwear brands markets and grow existing and new swimwear and beach lifestyle product categories such as activewear, resort wear and accessories.

“The goal is to preserve each brand's DNA and heritage, while enabling the brands to enhance their global growth,” said the private equity firm in a statement.

Seafolly and Maaji to merge as part of L Catterton deal

Founder of Seafolly, Anthony Halas added: "Seafolly is currently a leader in swimwear and beach lifestyle, offering innovative designs and unparalleled fit. Coupled with Maaji and bringing together our target markets and value propositions, this merger will create a unique and powerful offering on the global landscape. With the backing of L Catterton Asia, we will gain access to their ability to source supplies, improve product distribution and enhance retail channels."

Founded in 1975, Seafolly was inspired by the spirit of the ‘Australian summer’ and is now sold in 41 countries, and has 32 standalone stores, 22 in Australia, 6 in the US, and 4 in Singapore, and it also has its own e-commerce. In the UK the brand is stocked in department stores including John Lewis, Selfridges, House of Fraser, and Harrods.

Commenting on the deal, Miguel Piedrahita, Maaji's chief executive officer said: "This partnership is a critical step towards achieving our vision of positioning ourselves as a global beach lifestyle leader while continuously meeting the high-quality demand of our #RealMermaids.

“Seafolly and Maaji rank among the most creative, unique and innovative beach lifestyle brands in the market; we believe joining forces with them through our new admired partner L Catterton Asia, will enable us to deliver game-changing products and experiences to our consumers.”

Maaji was founded by sisters Manuela and Amalia Sierra in 2002 and influenced by their Colombian heritage. The label currently has a presence in more than 54 countries and has 12 standalone stores across the Americas, as well as numerous partners such as Nordstrom, Revolve, Amazon, Zappos, Neiman Marcus, Anthropologie and Bloomingdales.

L Catterton Asia, previously known as L Capital Asia, was launched in 2009, and manages over 1.6 billion dollars across two private equity funds, and over 2 billion dollars including co-investments. Its investments include Trendy International, Charles and Keith, Pepe Jeans Group, Crystal Jade and YG Entertainment.

Images: Maaji Facebook and Seafolly Facebook