The Bottom Line: NewSpring Invests in Digital Stronghold
February 08, 2022
NewSpring, a family of private equity strategies, announced today that NewSpring Mezzanine, the Firm’s dedicated mezzanine strategy, has invested subordinated debt and preferred equity into Digital Stronghold alongside Digital Fuel Capital.
Digital Stronghold is a platform company of leading men’s lifestyle brands
Digital Stronghold is a platform of growing men’s fashion and lifestyle brands that primarily sells products directly to consumers online. Based in San Francisco, the company has heavily invested in targeted digital marketing which has helped rapidly grow its customer base across the U.S. By centralizing its marketing, website optimization, inventory management, and data analytics capabilities, Digital Stronghold has been able to scale the business quickly and efficiently in the growing men’s fashion market.
Proceeds from this transaction will be used to support the acquisition of Boston Scally
NewSpring’s investment will be used to support the acquisition of Digital Stronghold’s third platform company, Boston Scally, a provider of high-quality flat caps. Boston Scally joins Taylor Stitch, a premium male clothing provider, and The Tie Bar, a one-stop shop for affordable and stylish men’s accessories. With the addition of Boston Scally, Digital Stronghold further diversifies its product offering and broadens the reach of its distribution to a new customer base.
Digital Stronghold operates in the large, fragmented, and growing men’s fashion market
Digital Stronghold will continue to grow its platform of leading men’s fashion brands by seeking out attractive M&A and organic growth opportunities. The company has already identified multiple acquisition targets in the men’s swimwear and sunglasses space that will complement its existing brands and allow the company to realize even higher economies of scale.
“The high-quality products our platform companies provide has led to high levels of customer satisfaction and repeat purchases. By continuing to refine our data-driven approach to marketing, we’re able to put our product in front of interested buyers at the right time and place, leading to continued sales growth across our brands. We’re excited to work with our new partners at NewSpring to bring Boston Scally on board and seek new acquisition targets that will grow our platform.”
Digital Stronghold is led by an aligned leadership team focused on finding new opportunities to grow the business
Led by Co-Founder and CEO Mike Maher, Digital Stronghold’s leadership team is comprised of experienced fashion industry professionals and sales and marketing experts that have positioned the company for continued rapid growth.
“By combining resources and investing in data-driven marketing and sales tactics, Digital Stronghold has grown its market share considerably and created a solid platform for continued growth and expansion. Adding new companies to the platform and offering new complementary products will allow Digital Stronghold to realize even greater economies of scale, and we’re thrilled to work with their management team as we continue to seek higher levels of growth for the company.”