HgCapital Trust plc Regulatory News (HGT)

5 Mar 2007 10:43

HG Capital Trust PLC05 March 2007 The following is the text of a press release issued by HgCapital, which managesthe investment portfolio of HgCapital Trust plc alongside those of otherinstitutional clients. The Trust, which is a listed investment trust givinginvestors the opportunity to participate in all of HgCapital's investments, willinvest approximately £4.8 million in Americana International Limited. HgCapital acquires leading urban streetwear brands Bench and Hooch •Growth in UK and Germany •Will work with management to drive international expansion London 5 March 2007: HgCapital, the European sector-focused private equityinvestor, today announced that together with existing management it is acquiringAmericana International Ltd, owner of the brands Bench and Hooch. Originallyknown for its strong graphic-based t-shirts and tops, Bench has now developedinto a broader urban lifestyle clothing range, while Hooch is targeted at theyounger female fashion market. In a deal with a value of £190 million (including debt, equity and rollover),HgCapital is investing alongside existing management to support Americana'splans for growth. This will build on success in the UK market, where Bench hasincreased sales at a rate of over 20% per annum over the past five years. ISISEquity Partners, investor since August 2003, is selling its stake in thebusiness. International growth is key to HgCapital's strategy for Bench and Hooch. Salesthrough its German subsidiary have quadrupled over the past two years and, inNovember 2006, it opened its flagship concept store in Berlin. The plan is tobuild on this success in the German market by expanding the brands' presenceacross Europe. They are currently sold in over 20 countries world-wide,including the US, Canada and Japan. HgCapital is looking forward to working with Americana's existing managementteam, led by David Brock, the Chairman. David is also Chairman of Phase Eightand Jane Norman, both private equity-backed fashion retailers. In addition,HgCapital is in talks with a number of potential candidates for the position ofGroup Chief Executive to lead the next phase of Americana's growth. This is HgCapital's second Consumer and Leisure transaction in three months,following the acquisition of Schleich, the global manufacturer of toy figurines,in December 2006. It demonstrates the company's appetite to invest in leadingbrands with significant growth potential, particularly in international markets.HgCapital's other investments in branded consumer businesses include TheSanctuary Spa (Spa and Spa beauty products) and Sporting Index (world marketleader in sports spread-betting). Richard Mathews, Director at HgCapital, said, "We are delighted to be investingin these brands. Americana's management has delivered tremendous growth over thelast five years and Bench is now a brand that has real authority with itscustomer base. It is a great platform to grow from. We are really excited aboutworking with the team to build on the momentum. This is HgCapital's secondConsumer and Leisure deal in three months and fits perfectly with our strategyof investing in great brands and great management." David Brock, Chairman of Americana, added, "We had a great deal of interest onthis occasion but chose HgCapital because of its experience and focus oninternational markets that offer us such great potential. We are looking forwardto working closely with the team as Americana enters its next exciting phase ofgrowth". Andy Gregory of ISIS said, "Americana has been extremely successful indelivering strong organic growth in the UK, Europe and North America; and duringour investment both Bench and Hooch have become core brands in their markets.Significant investment has been made in developing a strong operating platformcapable of supporting the growth in all trading territories going forward. Thisis an excellent business and we wish the team well for the future". For further details: HgCapitalRichard Mathews +44 (0)20 7089 7888 MaitlandPeter Ogden +44 (0)20 7379 5151 About HgCapital HgCapital makes private equity investments in the European mid-market. We focuson buyout investments in businesses with enterprise values ranging between EUR50 and EUR 500 million. Our business model combines sector specialization withdedicated, pro-active support to our portfolio companies and the application ofsignificant human resource to each phase of the investment process. We managemore than EUR 2.7 billion for some of the world's most respected institutionaland private investors. We exist to generate superior outcomes for our clients,management teams, vendors and intermediaries. For more information on HgCapital please visit www.hgcapital.com. About Americana Americana International Ltd, owner of the brands Bench and Hooch, was founded in1990 and is a leading branded apparel business. Bench, launched in 1995, takesits inspiration from the Manchester skateboarding and street culture, and isaimed at both men and women in the 16-25 year age group. Hooch is a fashionclothing brand targeted at the young female market. The business has bothwholesale and retail operations throughout the UK and Europe and amarket-leading sourcing business in the Far East. Based in Manchester, Americanaalso has significant operations in London, Munich and Shanghai. This information is provided by RNS The company news service from the London Stock Exchange