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Swimwear Maker Adds Labels, 190,000-SF Lease

The biggest swimwear maker in the U.S. is getting bigger with an expansion to Buena Park following its latest acquisition.

Manhattan Beachwear Inc. recently signed a lease for a 191,000-square-foot warehouse and distribution center in Buena Park just six miles from its headquarters in Cypress. It will allow the company to consolidate operations spread over three locations, two in Los Angeles and one in Orange County.

The move follows last month’s acquisition of CMK Manufacturing in Los Angeles, which adds a new segment to the Manhattan Beachwear lineup. CMK specialized in women’s active and lifestyle apparel under the brand names Green Dragon and Pink Lotus.

“We were looking to capitalize on the whole active resort movement that is happening,” said Carrie Seifert, Manhattan Beachwear’s public relations director. “We are looking to expand our reach into that market.”

The company also introduced the first resort collection for its La Blanca label at the Mercedes-Benz Fashion Week Swim industry trade show last weekend in Miami, Seifert said.

The bulk of CMK’s operations, such as manufacturing, warehousing and distribution, will be integrated with Manhattan Beachwear. Design and sales will continue to be managed by company founders Caroline and Michael Keefer as part of Manhattan Beachwear.

The deal for CMK, which came on undisclosed terms, continues a trend of growth at Manhattan Beachwear, which had $550 million in retail sales last year, according to Business Journal estimates. It employs 240 in Orange County and 440 companywide.

The company had $65 million in wholesale sales when Linsalata Capital Partners, a Cleveland-based private equity firm, bought it in January 2010.

It was combined 10 months later with its then-competitor, Los Angeles-based Apparel Ventures Inc.

That deal gave Manhattan Beachwear a portfolio of proprietary brands, such as La Blanca and 2 Bamboo, and license agreements with Ralph Lauren, Trina Turk, ABS, Puma and Rampage.

The growth strategy continued in 2012 with the addition of two licensing agreements.

Deals

Manhattan Beachwear struck a deal to make men’s and women’s swimwear in the U.S. for two lines under German athletic

apparel company Adidas AG—a high-

performance line called Adidas Pool and Adidas Beach, which focuses on fashion swimwear.

The company also signed a licensing deal to make and sell Lexington, Mass.-based Sperry Top-Sider’s men’s and women’s swimwear lines. Sperry is part of Topeka, Kan.-based Collective Brands Inc., which also owns Keds and Airwalk, among other footwear and accessories brands.

Manhattan Beachwear also holds the right to make swimwear under labels such as Hobie and Kenneth Cole Reaction, among others. Its own labels include The Bikini Lab, 24th & Ocean, and Maxine of Hollywood. The brands are sold to a mix of major department stores and other retailers, including Saks Inc., Nordstrom, and Bloomingdale’s.

The lease for the distribution and warehouse space in Buena Park is for a building at 6300 Valley View St. that features 26- to 30-foot ceilings and two secured yard

areas.

“We are consolidating the three locations into approximately the same square footage all in one new location,” David Trinkle, the company’s senior vice president and chief financial officer, said in a statement. “We are also changing how we utilize the space, moving from a ‘garments on hanger’ storage method to ‘flat pack’ storage in racks and adding conveyors, pick module, sorters, and ‘put to wall’ technology to store and pick our products more efficiently.”

Industrial brokerage Cushman & Wakefield Inc.’s Rooney and Eric Daschbach represented Manhattan Beachwear in the deal, and the firm’s Richard and Randy Ellison represented the building’s owner.

“The site search focused on a 15-mile radius of the company’s current distribution facilities,” said Rooney Daschbach. “This facility met their requirements, and it was close to their headquarters in Cypress.”

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