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Nogales Investors completes follow-on investment in Naartjie Kids

Nogales Investors, a Los Angeles-based private equity firm, has made a USD6m follow-on investment in its portfolio company Naartjie Kids, a branded retailer for children’s clothing.

This follows Nogales’ USD15m growth equity investment made in 2008 to expand the company’s store base beyond the western US and capitalise on the downturn in commercial real estate.

In addition to Nogales’ USD6m investment, Naartjie Kids raised an additional USD2m from other shareholders.

Naartjie Kids’ initial US store growth was focused primarily in California, Utah and Arizona. Over the past two years Naartjie has expanded its store footprint into the Northwest, New England, New York, the Mid-Atlantic, Texas, Tennessee, Kentucky and the south-eastern US. By the end of 2010, Naartjie will have a total of 43 stores in the US, compared to 18 in August 2008 when Nogales’ initial investment was made.

Naartjie Kids was founded in 1989 in Cape Town, South Africa.

Luis Nogales, managing partner of Nogales Investors, says: “While continuing to perform strongly in a challenging retail environment, generating consistent, strong comparable store sales and explosive growth in its e-commerce channel, Naartjie continues to see favourable new store opportunities. Therefore, we have decided to accelerate the pace of new store openings to continue to capitalise on these expansion opportunities with the additional capital infusion.”

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