On Monday, Bluestar Alliance LLC said it had signed a definitive agreement to acquire the Catherine Malandrino brand and intellectual property assets from Tahari ASL LLC for an undisclosed sum. They have established a new joint venture that will be majority-owned by Bluestar, in partnership with Tahari ASL.
Elie Tahari, chairman of Elie Tahari Ltd., and Arthur Levine, president of Tahari ASL, have been investors in Malandrino’s company since October 2011, and they will continue as minority partners in Malandrino’s business. Les Schreiber is also a partner in Tahari ASL.
Malandrino said the new investment from Bluestar will allow her to reinforce the Catherine Malandrino image through marketing and advertising, open more freestanding stores in the U.S. and internationally, and expand her global business through licensed categories such as home and accessories.
Malandrino brought Tahari and Levine into the fold two years ago in an effort to strengthen the company’s infrastructure and expand her brand at retail and wholesale, add new categories and grow internationally.
Malandrino was able to tap into Tahari and Levine’s resources in both Asia and Europe, as well as their business expertise. The designer said that while the partnership had many advantages, she realized the company could benefit from additional investors.
Levine and Tahari successfully helped her launch Catherine Catherine Malandrino, a diffusion line which is sold at such retailers as Lord & Taylor, Dillard’s and nordstrom.com, as well as specialty boutiques. “Before we were limited to a more urban woman who bought designer clothes,” said Malandrino, who started her company in 1998.
“We were in a position where we had to do licensing, but we didn’t have the wherewithal. This is where Bluestar came to the table,” said Levine. Malandrino said she began speaking with Bluestar about two-and-a-half-years ago, before striking a deal with Levine and Tahari. But once that deal was in place in 2011, it was no longer necessary to continue discussions. Malandrino started talking to Bluestar again about two months ago.
Bluestar was founded in 2007 by Gabbay and Ralph Gindi, who own, manage and market a portfolio of consumer brands which includes Kensie, Mac + Jac, Joan Vass, Kooba, Yak Pak, English Laundry, Hot Kiss, First Kiss and Harvé Benard. While their success has been mostly in midtier distribution, they have begun eyeing firms higher in price point. Bluestar’s strategy is to build brands and consumer recognition through licensing programs that fit the clients’ profile.
“We look forward to growing the Catherine Malandrino brand into an international power house,” said Gindi, president and chief operating officer. “We are exploring exciting opportunities with other strategic partners that will include the rollout for retail stores and wholesale luxury collections for the Catherine Malandrino brand.” He also noted that Catherine Malandrino will continue to be manufactured by Tahari ASL under license.
source: wwd