Herschel Supply Co finds new backers in Eurazeo, CGA and HOOPP
It's one of the biggest lifestyle success stories of the past few years. In the space of a decade, brothers Jamie and Lyndon Cormack have managed to build a brand that has established itself as a key reference in its sector. Launched in 2009, Canadian brand Herschel Supply Co. can now more than hold its own against its competitors in the backpack category.
The company, which doesn't report its financial results, is now present in 90 countries around the world, and employs 200 people at its headquarters in Vancouver and in its offices in New York, Los Angeles, Shanghai and Hong Kong. However, despite receiving interest for some time, the company's founding brothers had rejected proposals from investors up until now.
The brand's 10th anniversary therefore marks a new phase for the company, which has brought in new backers in the form of a consortium of three groups who have each taken a minority investment in Herschel: Eurazeo Brands, Alliance Consumer Growth and HOOPP Capital Partners, the private capital arm of the Healthcare of Ontario Pension Plan, each investor bringing their own expertise.
"[Eurazeo Brands] will serve as a value-added partner that brings proven brand-building expertise and global capabilities. ACG will provide deep consumer products experience, and along with HOOPP, will support the strong management team in its efforts to develop new product categories, grow the Company, increase brand awareness and extend its global footprint as it transforms into a culturally relevant lifestyle brand," explained Herschel in a press release.
Herschel is still focused on bags, but over the past few seasons its founders have made no secret of their ambition to develop their textile division. The company's new partners, whose total investment has not been revealed, should help it develop this potential.
"Herschel reimagined the backpack and in doing so changed the category forever, but that was just the beginning," said Eurazeo Brands' managing director, Adrianne Shapira. "We are thrilled to partner with Herschel management, ACG and HOOPP to leverage the company's powerful customer engagement and accelerate growth across categories, channels and geographies."
The investment fund has brought $60 million to the project. Eurazeo Brands, which already has stakes in Nest Fragrances, Pat McGrath Labs, Bandier and Q Mixers, is taking advantage of the opportunity to reaffirm its ambitions as an investor. "Eurazeo Brands aims to invest a total of $800 million in high potential North American and European consumer companies across a wide range of verticals including beauty, fashion, home, wellness, leisure and food," explained the company.
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