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Falconhead Invests In NYDJ

Falconhead Capital, LLC, a private equity firm specializing in investments in consumer-focused businesses in the leisure, lifestyle, sport, and media categories, today announced that it has acquired a controlling stake in Not Your Daughter’s Jeans (“NYDJ”), a global manufacturer, marketer and distributor of women’s jeans and pants targeting the average-sized, fashion-conscious 35+-year-old woman. Financial terms of the transaction were not disclosed.

Based in Vernon, California, NYDJ was founded in 2003 by Lisa Rudes-Sandel and her father George Rudes, who recognized the need for a new category of stylish jeans as a sophisticated alternative for an older demographic. Today NYDJ produces a branded line of jeans and pants in a variety of styles, fabrics and colors. All of NYDJ’s products use the company’s proprietary Tummy Tuck™ technology, which flattens the stomach, contours the hips and lifts the buttocks using a combination of blended fabrics, proprietary crisscross stitching, reinforced pockets and increased rise. NYDJ’s products are in strong demand by leading department store retailers, and currently sell in Nordstrom, Bloomingdale’s, Macy’s and Dillard’s, among others. The company also sells to approximately 2,000 specialty stores nationally and internationally through distributors in Canada, Ireland, United Kingdom, Netherlands and other countries.

Falconhead also announced that industry veteran Edwin Lewis will serve as Chairman and Chief Executive Officer of NYDJ. Mr. Lewis is the former chief executive officer of Tommy Hilfiger and Mossimo, and served in numerous senior executive positions over 18 years at Ralph Lauren including as President of the Women’s Wear division. Mr. Lewis participated actively in Falconhead’s transaction process and has made a personal investment in NYDJ.

David S. Moross, chairman and chief executive officer of Falconhead Capital, said: “Falconhead is proud to invest in NYDJ, an innovative apparel company focused on a growing, underserved niche market. NYDJ is well-positioned as one of the leading jeans brands for ‘real’ women who want to wear fashionable, age-appropriate jeans with a flattering fit. The company’s founders and management team have done a superb job of leveraging its proprietary technology to deliver an outstanding product to consumers through solid relationships with several leading retailers. We believe that NYDJ has exceptional growth opportunities through continued expansion of its product line, deepening relationships with retail partners and diversification of its distribution channels.

“We are excited that Edwin Lewis will lead NYDJ as we pursue these and other important initiatives. Edwin has an exceptional track record of strong performance, innovation and brand development through his leadership roles in several leading apparel companies. He is deeply respected in the apparel community and has valuable relationships that will serve us well as we build NYDJ together,” Mr. Moross added.

Mr. Lewis said: “I am delighted to partner with David Moross and Falconhead Capital, and the Rudes Family, to further develop the emerging NYDJ brand. NYDJ stands on the cusp of a very exciting opportunity in the apparel industry, as it delivers an outstanding product to a demographic that is eager for great-looking and great-fitting clothing. The strong demand the company has seen from retailers in just a few short years is evidence of its significant market potential. The Falconhead team, the Rudes family and I share a common vision for the future of this outstanding business, and I am pleased to be moving forward with partners that can contribute in many different ways to our future success.”

The Rudes Family will continue to own a significant equity stake in NYDJ, serve on the company’s Board of Directors and play an integral role in its operations. Other members of the NYDJ management team will remain in their current positions.

George Rudes said: “Our family is very pleased to welcome Falconhead Capital and Edwin Lewis as our new partners in the continuing growth and development of NYDJ. Our management team and employees have accomplished a great deal in the short five years since NYDJ was founded, and there are significant opportunities before us. The growth capital and new executive leadership that we have brought into the company through this transaction will enable us to take NYDJ to a new level and accomplish our long-term business objectives.”

The Sage Group acted as exclusive financial advisor to Not Your Daughter's Jeans.