Canadian fashion firm Aritzia acquires menswear brand Reigning Champ

Reigning Champ is a leading designer and manufacturer of premium athleticwear, utilising unparalleled materials and craftsmanship. Rooted in classic, timeless garments, Reigning Champ is sold in the most influential digital and retail locations throughout the world, and due to the acquisition, will see an immediate benefit in tapping into Aritzia's best-in-class infrastructure and operational expertise, the companies said in a joint press release.

"As an innovative design house offering exceptional experiences through its online and retail platforms, Aritzia's well-established track record as a successful direct-to-consumer business is one that we've long admired. Leveraging Aritzia's unparalleled world-class infrastructure and expertise, this partnership provides an exciting path forward to elevate Reigning Champ to the next level as a premium athleticwear brand. We look forward to working with the incredibly talented Aritzia team to capitalise on the limitless opportunities ahead," said Craig Atkinson, co-founder and chief executive officer of Reigning Champ.

Atkinson is joined on Reigning Champ's senior leadership team by co-founder and vice president of manufacturing Chris Nordee and chief financial officer Paul Heathcote – all with a long history in the apparel industry. They will continue operating the business in partnership with Aritzia through a transition period of approximately five years to allow both businesses to focus on sustaining their unique brands and cultures while leveraging mutually beneficial synergies and efficiencies to an accelerated path forward.

Reigning Champ is expected to deliver approximately $25 million in revenue and $5 million in adjusted EBITDA in calendar 2021. The acquisition is expected to be completed in June 2021, subject to customary closing conditions and approvals. Aritzia will fund the initial purchase with cash on hand.

Financo and Raymond James served as financial advisors to Aritzia, with Borden Ladner Gervais LLP acting as legal counsel. RBC Mid-Market Mergers & Acquisitions served as financial advisors to Reigning Champ, with Blake, Cassels & Graydon LLP acting as legal counsel.

Fibre2Fashion News Desk (KD)