ACON Investments takes majority stake in True Religion

By acquiring a controlling stake in True Religion, ACON Investments captures an iconic denim apparel brand generating approximately in annual turnover and structurally expands its consumer retail portfolio. Announced in January 2025, this definitive leveraged buyout orchestrates a major ownership transition for the target, effectively facilitating the exit of its former equity holders—a consortium of term loan lenders including Simon Property Group, Farmstead Capital Management, and SLR Credit Solutions, which had previously assumed control following a 2020 corporate reorganization. To execute this complex recapitalization, which values the apparel manufacturer at an enterprise value of based on a highly attractive in EBITDA, the primary private equity sponsor partnered strategically with SB360 Capital Partners. This co-investor, acting as a specialized retail affiliate, brings critical merchandising expertise to the syndicate. Under the newly established governance framework, Chief Executive Officer Michael Buckley retains his operational leadership role alongside a significant minority shareholding position, ensuring strict management continuity. The underlying strategic thesis of this institutional capital injection focuses on accelerating the brand's digital transformation, enhancing its direct-to-consumer e-commerce capabilities, and aggressively broadening its international wholesale distribution reach. The financial architecture of the transaction is supported by a comprehensive debt package led by incumbent lender Second Avenue Capital Partners LLC, with supplementary credit facilities provided by Alpha Wave Global LP and Sagard Credit Partners. The execution of the buyout mobilized an extensive network of specialized advisory firms. On the buy-side, the acquiring consortium mandated Pillsbury Winthrop Shaw Pittman LLP as transaction counsel and Hogan Lovells as fund counsel. Conversely, the sell-side retained Robert W. Baird & Co. as exclusive financial M&A advisor, while Akin Gump Strauss Hauer & Feld LLP managed the legal structuring.