DAVIDsTEA Announces $14 Million (CAD) in Minority Financing Led by the Highland Consumer Fund
MONTREAL, April 10, 2012 /PRNewswire/ - DAVIDsTEA, a leading retailer of loose leaf teas, today announced a $14 million (CAD) minority investment led by the Highland Consumer Fund. The company was founded by Herschel and David Segal in 2008. Its teas range from traditional to exclusive blends and unique flavors, and products carefully sourced from around the world. The company has rapidly grown to more than 75 stores across Canada and has also entered the U.S. with 2 stores in New York City.
The Highland Consumer Fund will be joined in its financing round by Chip Wilson, the founder & former CEO of Lululemon Athletica. Their strategic investment in the business will be used to continue the company's strong revenue gains and help fuel the growth of retail operations across North America. As part of this, DAVIDsTEA will establish a U.S. headquarters.
Herschel Segal will continue to serve as Chairman of DAVIDsTEA and will be joined on the Board by David Segal, Jane Silverstone Segal, Sarah Segal (now interim President) and Javier San Juan, President of L'Oreal Canada. In addition, Chip Wilson and Tom Stemberg, Managing General Partner at Highland and founder and former CEO of Staples, will also be joining the Board of Directors. "DAVIDsTEA offers a strong brand, exceptional products and compelling customer experience that is shared with many of the other top retailers that I've been fortunate to work with," said Tom Stemberg. "Both Chip and I look forward to a strong partnership and sharing lessons learned."
Founded in 2008, with the demand for tea on the rise, DAVIDsTEA has grown from one store in downtown Toronto to more than 75 retail outlets across North America. Headquartered in Montreal, Quebec, the company offers more than 150 varieties of teas, including traditional straight teas, as well as unique exclusive blends and limited edition seasonal collections; DAVIDsTEA passionately develops premium teas with ingredients sourced from around the world. The company is dedicated to community involvement, in addition to a commitment to sustainable practices. Follow DAVIDsTEA's latest developments at facebook.com/davidstea and twitter.com/davidstea.
About The Highland Consumer Fund
The Highland Consumer Fund specializes in consumer products, services and retail investment opportunities in growth-focused companies with proven business models operating in attractive markets. The Fund brings together an investment team with extensive experience founding, growing, operating and investing in successful consumer companies. It also offers companies a unique value proposition through the hands-on guidance and active involvement of its consumer domain experts. The Highland Consumer Fund has invested in and worked to create such firms as City Sports, Guitar Center, J.McLaughlin, Pharmaca Integrative Pharmacy and Pinkberry. For more information, visit Highland's web site at www.hcp.com.