LOS ANGELES, July 24, 2023 – Kingswood Capital Management, LP (together with its affiliates, “Kingswood”) announced today that it has acquired Obsession Holdings, Inc. (“Obsession” or the “Company”), one of the largest fragrance retailers in the United States. Kingswood is partnering with industry veterans Frank Mroczka and Bill Aisenberg, who are staying on as Chief Executive Officer and Chief Financial Officer, respectively, and joining Kingswood on the board of directors. The deal represents Kingswood’s third specialty retail acquisition since 2020.
Headquartered in Miramar, FL, Obsession is one of the nation’s largest retailers of authentic designer and proprietary fragrances and related accessories. Obsession operates over 215 retail stores across 38 states under The Fragrance Outlet and Perfumania banners, as well as related ecommerce websites. The Company’s stores offer a broad assortment of 1,000+ SKUs, including hard-to-find and limited production fragrances.
“We believe Obsession will continue to benefit from the positive tailwinds in the fragrance market and we are excited about partnering with the company to accelerate its growth,” said Michael Niegsch, Partner of Kingswood. “The management team has done an excellent job expanding the product offering and developing a best-in-class in-store experience and we look forward to helping deliver even more value to customers through further proprietary product development, new store openings, and ecommerce expansion, as well as continuing to execute upon the management team’s ongoing operational initiatives.”
“Kingswood is an ideal partner for the next stage of the company’s growth given the firm’s extensive experience in retail, and we are thrilled about the partnership,” said Frank Mroczka, CEO of Obsession. “We look forward to further enhancing our customers’ experiences by investing in new store growth and omnichannel capabilities and offering the widest selection of high-end fragrances.”
“The Obsession transaction represents another example of Kingswood’s continued focus on investing in differentiated concepts within the specialty retail industry,” said Alex Wolf, Managing Partner of Kingswood. “We are excited about investing in and supporting Obsession’s continued growth and look forward to our collaboration with the current management team.”
CIBC Bank USA provided debt financing for the acquisition. Kirkland & Ellis LLP served as legal counsel to Kingswood. Honigman LLP and Lincoln International LLC advised Obsession on the transaction.
About Obsession Holdings, Inc.
Headquartered in Miramar, FL, Obsession is one of the nation’s largest retailers of authentic designer and proprietary fragrances and related accessories. Obsession operates over 215 retail stores across 38 states under The Fragrance Outlet and Perfumania banners, as well as related ecommerce websites. The Company’s stores offer a broad assortment of 1,000+ SKUs, including hard-to-find and limited production fragrances. For more information, please visit one of Obsession’s websites at fragranceoutlet.com or perfumania.com.
About Kingswood Capital Management, LP
Kingswood Capital Management, LP is a private investment firm primarily focused on investing in businesses in transition. In addition to access to capital, Kingswood brings relevant industry relationships and a broad network of internal and external operating resources that can strengthen the businesses it partners with and enhance value. Kingswood has extensive experience with complex transactions where it provides tailored solutions that balance the objectives of all constituents. For more information, please refer to the Kingswood website at kingswood-capital.com.