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Dive Brief:
- Utah-based private equity company 2.0 Ventures has acquired a majority stake in DTC athleisure brand Feat Clothing, per a news release. The financial terms of the deal were not disclosed.
- As part of the deal, Feat co-founder and CEO Taylor Offer is stepping down from his leadership role and will stay on as a company board member. A CEO successor has not yet been named, Offer said in an email to Retail Dive.
- Under 2.0 Ventures, Feat's product offerings, distribution channels and team of seven employees will remain unchanged, per the release.
Dive Insight:
The acquisition comes after Feat secured its fourth round of funding in 2022 that valued the apparel company at $75 million. Over four rounds Feat received a total of $5 million in funding.
The decision to sell the brand to this investment firm made sense to the Feat partners. “2.0 Ventures has world class operators and extensive experience in the direct to consumer world, making them the perfect partner for the continued growth of Feat,” Offer said.
According to the 2.0 Ventures website, the acquisition of Feat marks its first ownership of an apparel brand. Within its portfolio, it has several DTC brands in plant care, pest control, golf gear and men’s grooming, including Krado, Pestie, Stix and Manscaped.
Co-founded by Offer and Parker Burr, Feat has been in business since 2015. The brand started as a colorful lifestyle sock brand that expanded into tops, hoodies, joggers and shorts. The brand sells through its website and in 2022 opened a pop-up shop in Santa Monica, California.
Feat has had design collaborations with several influencer media personalities including Kristin Cavallari, Brody Jenner and Helen Owen. The brand markets itself as “the most comfortable athleisure clothing in the world.”
The purchase of controlling interest in Feat by 2.0 Ventures reflects a general trend to invest in the continued popularity of athleisure apparel. A pioneer in the space has been Lululemon, a brand that started out selling yoga pants and leggings and successfully marketed the products as casual lifestyle sportswear. Another major brand, Under Armour, is pivoting more to lifestyle products and athleisure in order to grow.
While Offer will remain on the brand’s board of directors, he said he’s looking forward to taking a break and will not be involved in the day-to-day running of the company. “I am excited for long walks with my dog on the beach, only using my flip phone, and finally ordering guac on my Chipotle burrito," he said in a statement.
via https://www.aiupnow.com
Howard Ruben, Khareem Sudlow
