Citizens of Humanity Partners With Buyout Firm
Huntington Park, Calif.–based Citizens of Humanity announced Feb. 2 a partnership with Boston-based buyout firm Berkshire Partners. The deal, which gives Berkshire 62.5 percent ownership of the premium-denim company, is valued by industry sources at $250 million to $300 million.
Jerome Dahan, Citizens of Humanity’s co-founder and chief executive, retains the remaining 37.5 percent ownership of the company and will keep his post for at least five years. Dahan, who also co-founded 7 for All Mankind in 2000, is the former head designer of Lucky Brand Dungarees.
“I am so excited,” Dahan said, “I get to run the business the way I want. It’s an advantagefor us all.”
Citizens of Humanity jeans are sold in upscale department stores, including Nordstrom, Saks Fifth Avenue, Bloomingdale’s and Neiman Marcus, as well as boutiques such as Belle Gray in Sherman Oaks, Calif., and Ron Herman at Fred Segal. Last year, Citizen of Humanity made a profit of $30 million–$35 million on sales of $80 million–$85 million, Dahan said.
Reports of the deal indicate that the company, which launched in 2003, may move beyond women’s apparel into men’s and children’s categories. —Erin Barajas
