Leonard Green tries on Lucky Jeans for $225m

The deal marks the second private equity buyout of a denim brand this month.

Leonard Green & Partners will acquire Lucky Brand Jeans from Fifth & Pacific for $225 million, according to a statement.

The firm will pay about $140 million of the sale price in cash and the remaining $85 million in the form of a three year seller note. The transaction is expected to close during the first quarter of 2014. Latham & Watkins provided legal counsel for the deal.

Leonard Green’s retail portfolio includes apparel and accessories companies including J.Crew, which the firm bought in 2010 for $3 billion, and London-based Topshop/Topman Holdings, which it acquired for a reported £500 million ($805 million; €617 million) last year.

Leonard Green also targets businesses in consumer products, distribution, financial and healthcare companies, investing between $500 million and $2 billion per deal. The firm’s consumer products portfolio includes Authentic Brands Group which manages fashion and celebrity brands.

Leonard Green’s most recent private equity fund closed on $6.25 billion in May 2012. Fund VI had a $5 billion target and launched in 2011.

Denim brands have attracted a number of investments for private equity firms recently. Earlier this month, mid-market firm Crestview Partners reportedly announced plans to buy NYDJ Apparel, maker of Not Your Daughter’s Jeans, from Falconhead Capital. At the beginning of the year, TowerBrook Capital Partners acquired California-based denim producer True Religion, which was valued at €835 million at the time of sale.

Based in Los Angeles, Leonard Green was founded in 1989 by the late Leonard Green. Today the firm is led by managing partners John Danhakl, and Peter Nolan, who previously worked at Donaldson, Lufkin & Jenrette, as well as Jonathan Sokoloff, former managing director at Drexel, according to the firm’s website.

Leonard Green was not available for comment at press time.

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