True Religion Brand Jeans Shop Enters New Era with Private Equity Firms Acon and SB360
True Religion, a premium denim jeans brand founded in 2002, has been acquired by private equity firm Acon Investments and SB360 Capital Partners, a retail investment fund led by American Eagle CEO Jay Schottenstein. The terms of the transaction have not been disclosed, but the company is expected to be valued at a mid-single-digit multiple of its earnings before interest, taxes, depreciation, and amortization.
Under the ownership of Acon and SB360, True Religion is poised to enhance its digital and retail capabilities, accelerate international growth, and continue to innovate its apparel offerings. The brand has seen a comeback in recent years, with sales growing 20% to $280 million and EBITDA reaching $80 million in 2023.
Acon, based in Washington, D.C., has $7.2 billion in assets under management and has previously invested in popular consumer brands such as Applebee’s, Igloo, Spirit Halloween, and Borden Dairy. SB360 is Acon’s strategic partner and part of Schottenstein’s network of companies, which includes American Eagle and DSW.
True Religion has made a successful comeback, thanks to its revitalized marketing strategy, which has included collaborations with hip-hop stars like Megan Thee Stallion and content creator Jayda Cheaves, who has nearly 9 million followers on Instagram. The brand has also benefited from the resurgence of Y2K fashion, which has seen a resurgence in popularity among younger shoppers.
Having emerged from its second bankruptcy in 2020, True Religion was led by CEO Michael Buckley, who has worked to cut expenses and focus on a new consumer demographic, which includes individuals with a median income of $60,000 to $65,000. The brand’s average price point for jeans has also come down to under $100 a pair, making it more accessible to its target customer base and comparable to competitors like Levi Strauss.
The company’s potential to become a billion-dollar brand is high, with Buckley stating that it is expected to be a leader in the premium denim market. To achieve this goal, True Religion is focusing on expanding its assortment, driving direct sales online, and reaching more women.
