Japanese investors, TSI Holdings, are prepping for skateboarding’s entrance into the 2020 Olympics in Tokyo with plans to purchase a 90% stake in skate brand Huf for approximately $63 million USD.
Press Release: Irvine, CA, December 6, 2017 – HUF Worldwide, (HUF), a leading skate and streetwear brand, has signed an agreement for it to be sold to TSI Holdings, a Japanese company managing a portfolio of leading apparel brands. The transaction is expected to close by December 15.
HUF, founded by Keith Hufnagel as a skate hard-goods and apparel shop in San Francisco, developed its own label into one of the most sought after brands in the skate and streetwear communities. In 2014, the company partnered with investment firm, Altamont Capital Partners to support its growth and has continued to expand its business under Altamont’s ownership. The HUF Worldwide company includes the Lakai Limited Footwear brand – also part of the transaction.
Commenting on the deal, Steve Holley, HUF CEO said, “TSI is a great strategic partner and brand platform for HUF. The transaction gives us immediate access to the broader global marketplace in a way that would take us many years to achieve on our own. We are excited for HUF’s future as part of TSI.”
Hufnagel added, “We’ve had a long relationship with TSI as our distribution partner in Japan. I have total confidence that they understand HUF as a brand and that we will be able continue to create amazing product, which is the most important thing to me. I also want to thank Altamont and the team there for all of their support – they have been great partners.”
According to Tadashi Saito, President of TSI, “The acquisition of HUF is a key pillar in our strategy for global expansion and we are very excited to conclude this deal. We see huge potential for HUF both in the U.S. domestic market and throughout Asia. We believe HUF’s irreverent DNA has the power to transcend cultures and borders and therefore has truly universal appeal.”
Under TSI, HUF will operate as an independent global company and will continue to be led by Keith Hufnagel (Founder), Steve Holley (CEO) and Jon Brubaker (CFO). HUF global headquarters will continue to be located in Irvine, CA and creative offices will continue to be located in Downtown Los Angeles.
To facilitate the transaction, William Blair & Company, L.L.C. acted as the exclusive financial advisor and Ropes & Gray provided legal advice to HUF and Altamont Capital Partners on the transaction.
Lincoln International served as financial advisor and Wilson Sonsini Goodrich & Rosati acted as legal counsel to TSI Holdings.