Win Brands Group, a modern holding company that buys and builds brands that matter, announced today it raised $50M in capital from Assembled Brands and funds managed by Oaktree Capital Management, L.P.. The financing will accelerate the growth of Win's platform of consumer brands, starting immediately with the acquisition of Gravity, which also closed today.
Shopify-led omnichannel strategy
Win specializes in acquiring exceptional brands, then taking them to the next level by plugging in its Shared Services team of world class experts to implement an omnichannel strategy. Win's approach leads with a focus on Shopify, supported by marquee retailers such as Amazon, Target, Walmart, and Bloomingdales. Win's tried and trusted model led to it closing out 2020 with a 131.5% increase in annualized revenue across its enviable stable of consistently profitable brands, including home fragrance and lifestyle brand Homesick, and active lifestyle company QALO.
Category-leading addition to the Win lineup
The acquisition of Gravity adds yet another category-leading brand to the Win portfolio, growing Win's footprint in the home and gifting vertical, as well as marking its first foray into the wellness space, as self-care becomes a growing priority for customers and the global sleep economy addressable market surpasses $423B.2 After the organic success of Gravity's flagship product, the weighted blanket, the brand has since expanded its range to include mattresses, weighted robes, sleep masks, and a limited edition weighted blanket partnership with Pizza Hut in 2020, capturing the attention of high-profile fans like Chrissy Teigen, Jimmy Fallon, Jonathan Van Ness, and more along the way.
"With Shopify now far exceeding a million merchants on the platform, this funding is a validation of the unique value we bring to the growing number of beloved brands that are entering the marketplace every day," said Kyle Widrick, co-founder and CEO at Win Brands Group. "The investment from Assembled Brands and Oaktree will allow us to extend our comprehensive expertise to nurture a new generation of businesses, and bring more consumer brands like Gravity to the next level as part of the Win family. Gravity's passionate leadership, quality product, and tight-knit customer community are exactly what we look for in an acquisition, and we can't wait to get started working alongside their team."
"What excited our investment committee about Win is the power and scalability of its Shared Services model," said Michael Lipkin, President and COO at Assembled Brands. "The Win team has a great eye for identifying brilliant brands that are ready to take the next step, and a proven track record of driving omnichannel growth at scale."
"Assembled Brands supported our early acquisitions of QALO, as well as the working capital needs for Homesick, and has been instrumental in our ability to scale," said Eric Satler, President at Win Brands Group. "They are not only the leading lender to the consumer space, but also a trusted, strategic partner. This funding, along with Oaktree, is the logical next step in our partnership to create the largest community of independent brands."
"Working with Win was an opportunity we couldn't pass up," said Mike Grillo, co-founder and CEO of Gravity. "We're incredibly proud of what we've achieved: developing great products, building a passionate fanbase, and creating and leading an entire category. But the weight and expertise of Win offers us the opportunity to do so much more, and benefit in a way that is only possible as part of a community. We're thrilled to join the Win family and embark on a new stage of evolution for Gravity."
Adam Greene of Robinson Brog provided legal representation to Win on both transactions.
About Win
Win is a modern holding company that specializes in buying and building brands that matter. We start by acquiring exceptional, customer-focused companies with a proven track record, then plug in our shared services platform of world class experts to take them to the next level. So, instead of trying to scale alone, every brand that joins Win becomes part of a ready-made community, and instantly benefits from decades of expertise, as well as pooled resources, shared operational costs, and economies of scale. To learn more about Win, please visit winbg.com.
About Assembled Brands
Assembled Brands enables growing consumer brands to scale by providing a community of vendors, data driven insights, and financing solutions that include revolving lines of credit for individual brands and M&A financing. Our deep understanding of the direct-to-consumer landscape makes Assembled Brands the go-to provider for working capital for D2C brands and D2C holding companies.
About Oaktree
Oaktree is a leader among global investment managers specializing in alternative investments, with $148 billion in assets under management as of December 31, 2020. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has over 1,000 employees and offices in 19 cities worldwide. For additional information, please visit Oaktree's website at http://www.oaktreecapital.com.
About Gravity
Gravity is a premium sleep & relaxation company that creates science-backed solutions for sleep and stress. With their 2017 Kickstarter campaign that raised over $4.7MM, Gravity sparked the explosion in the weighted blanket market with their eponymous Gravity Blanket. Since then, over 250k units of the Gravity Blanket have been sold and it was named one of TIME Magazine's Best Inventions of 2018. Gravity has developed a full suite of relaxation products beyond the blanket, allowing consumers to find the perfect solution for them no matter their specific sleep and/or stress needs.
