Capital Raising

Moretz Sports has been a leading athletic sock company for over 30 years. Its own PowerSox brand is the highest selling performance sock in the specialty sporting goods channel, and its licensed brands of Under Armour, New Balance and Kathy Ireland are among the fastest growing sock names. After considering certain acquisition opportunities throughout the years, it was determined the most attractive acquisition would be Gold Toe, the leading dress sock maker. A combination of the two companies would create 1) the largest U.S. sock company, 2) a diversified platform between brands, customers and distribution channels, 3) the #1 market share in both the department store and specialty sporting goods channel and 4) synergies relating to both growth and profitability.

An approach was made to Gold Toe’s owner, Vestar Capital Partners. Subsequently, Moretz had the opportunity to acquire Gold Toe. Given that the Gold Toe business was larger than the Moretz business, equity financing was needed. A handful of highly qualified private equity firms were introduced to the opportunity. Ultimately, Moretz Sports chose to partner with The Blackstone Group, and Gold Toe was acquired.