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Case Study: Segrets Recapitalization

 

Liz Claiborne, Inc. has capitalized Segrets, Inc.

 

Summary:

Segrets, Inc. (“Segrets”) designs and distributes the Sigrid Olsen lines of women’s sportswear.  These lines consist of Sigrid Olsen Sport, Sigrid Olsen Collection and SO Blue and are found in major department stores throughout the U.S. Segrets management team hired the principals of Tellson to identify a financial partner to provide growth capital to accelerate their expansion and address shareholder’s objectives.  The principals of Tellson completed the assignment by arranging for the recapitalization of a majority interest in Segrets by Liz Claiborne, Inc.

The recapitalization by Liz Claiborne, a $2.5 billion apparel, and accessories company positions Segrets as a fully independent subsidiary, giving Segrets management team unparalleled access to working capital and international distribution while providing liquidity to Segrets shareholders.  Tellson can assist rapidly growing companies by arranging additional growth capital, whether it involves selling a minority stake or a controlling stake.  In some cases, management and owners determine that the sale of a majority stake or selling the business intis entirety provides the best outcome, as was the case with Segrets.

 

Tellson:

Tellson works with the owners and management of middle market companies across many industries.  Our principal focus is to enhance shareholder value and maximize liquidity opportunities.  This can be accomplished by the addition of long-term or permanent equity to the company’s capital base.  Additionally, Tellson undertakes mergers & acquisition assignments, which include the partial or total sale of businesses, operating divisions and asset sales as well as recapitalizations and related transactions.