TowerBrook Capital Partners L.P. agrees to the sale of Odlo Sports Group AG to Herkules

5 May 2010 - TowerBrook Capital Partners, L.P. ("TowerBrook") has agreed to sell Odlo Sports Group AG ("Odlo"), a leading European designer, manufacturer and distributor of functional sportswear, to funds managed by Herkules Private Equity Fund III (“Herkules”), the largest private equity fund in Norway, for an undisclosed sum, together with the management team.

Herkules will be the majority shareholder, with the management team and Odlo’s Chairman, Odd Roar Lofterød, retaining a significant stake in the group.

Since the acquisition in April 2006 by TowerBrook, Odlo has achieved strong organic revenue and EBITDA growth with compound annual growth rates in excess of 10% and 20%, respectively. Under TowerBrook’s ownership Odlo refocused its core business and brand, allowing the Group to significantly strengthen its position in Europe, enter new markets and accelerate new product development. Odlo has grown market share in its core markets of Germany, Switzerland and France, while rolling out a significant retail footprint to include 24 Odlo stores and 8 outlets and also set up new subsidiaries in Austria and Benelux. It has also recently entered Japan, a market with strong growth potential. The geographical expansion has been further underpinned through technical developments and product launches including the ‘Evolution’ underwear product line, the successful relaunch of the outdoor product line, and the eagerly anticipated bike product line, which will be introduced this summer.

Commenting on the transaction, Patrick Smulders, Senior Managing Director at TowerBrook, said: “We are delighted to announce that we have agreed the sale of Odlo. We have worked very closely with the management team over the last four years to achieve impressive growth and business expansion. The Group continues to grow market share in its core European markets and also recently entered the high growth Japanese market. The group has a strong and dedicated management team and we are confident about Odlo’s future.”

Odd Roar Lofterød, founder and Chairman of Odlo Sports Group, commented: “We are looking forward to Odlo’s continued successful development with our new partner and investor, Herkules. I want to thank TowerBrook for their support and partnership over the past years.”

Andreas Kessler, the CEO of Odlo Sports Group, is equally certain of having found the right partner for a successful future with Norway’s leading investment group: "With Herkules, we have now landed in the safe harbour we wanted and can jointly expand our position as the market and technology leader. Herkules and Odlo both pursue the same strategy in this regard, and that means we have a good basis for future cooperation."

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