H.I.G. Acquires Happy Kids, a Leading Children's Apparel Marketer

MIAMI – December 21, 1999 – H.I.G. Capital, a Miami-based private equity firm with over $750 million of capital under management announced today that it completed the acquisition of Happy Kids, a leading designer and marketer of children’s apparel, with annual sales of approximately $250 million. The purchase price was just over $100 million.

Happy Kids Inc. is a New York- based designer and marketer of custom-designed, licensed and branded children’s apparel. The Company’s major licenses include: “B.U.M. Equipment,” “AND 1,” “Mecca,” “World Wrestling Federation,” Nickelodeon’s “Rugrats,” National Football League, National Basketball Association, Major League Baseball and National Hockey League, as well as certain Warner Brother’s properties such as Looney Tunes and Saban’s Power Rangers, among other licenses. Happy Kids’ clothing line includes knit and woven tops, bottoms, overalls, swimwear and outerwear, playwear and activewear for newborns, infants, toddlers, boys and girls.

Sami Mnaymneh, Managing Director of H.I.G., noted that Happy Kids will serve as platform to consolidate the children’s apparel market, with the goal of reaching $1 billion in sales within the next 3-4 years.

H.I.G. Capital, which targets the acquisition of profitable companies with revenues of up to $250 million, as well as growth capital investments in early stage technology companies, currently has over 40 investments with combined revenues in excess of $3 billion.