Mergers & Matthew Williamson

TSM Capital buys 22 percent of UK fashion house, Lauren Davis tapped to consult
Tuesday, August 28, 2007

(NEW YORK) Matthew Williamson, just shy from celebrating his tenth anniversary next month, has taken the next step in assuring his company's financial future. TSM Capital announced Monday that it had acquired a 22 percent equity stake in Matthew Williamson Holdings Ltd., the UK-based luxury fashion house established in 1997, best known for its whimsical patterns and colorful prints. The investment was made in collaboration with the Aronson Group, founded by former Donna Karan chief executive officer Jeffrey Aronson. The Baugur Group, which maintains a 26 percent hold on the company after an initial investment in 2006, will maintain a significant equity interest in the business.

TSM Capital has joined forces with Mortimer Singer and Aslaug Magnusdottir in this new partnership to invest in designer businesses, retailers, and brands currently with net revenues between $5 million and $50 million.

"One of my great satisfactions has been to identify great designers at an early stage in their careers," said Marvin Traub, one of the founders of TSM Capital and former chairman and CEO of Bloomingdales. " I believe that Matthew Williamson is a great designer and that he has the potential to build a hugely successful global brand. In addition to his own collection, Matthew has done an extraordinary job in rebuilding the Pucci collection."

Lauren Davis, the socialite and Vogue contributing editor, has been tapped by Traub as an advisor to TSM Capital.

Williamson and Joseph Velosa, the company's founders, jointly retain the majority stake in the company. "I am thrilled by this deal and cannot wait to see the realization of the plan that we have put together," said Williamson in a statement. Global expansion, new product categories and flagship stores in key locations around the world are all part of that effort. The first free-standing Matthew Williamson flagship boutique opened in the Mayfair section of London in 2005; the U.S. flagship is slated to open in New York City in the first half of 2008. Additional stores will follow in Los Angeles and Paris.

The label is currently sold in 160 retail locations worldwide.