Newton Running has signed a deal to receive a substantial investment from Boston-based investment firm, Fireman Capital Partners.
Via his private equity company Fireman Capital Partners, Paul Fireman, is seen as the man who revolutionized the footwear industry in the 1980s as founding CEO of Reebok International. He has now returned to the business of high performance athletic shoes with a significant US$20 million reported investment in Newton Running Co.
Fireman Capital Partners (FCP) chose Boulder, Colorado based Newton Running, which was co-founded by CEO Jerry Lee and CTO Danny Abshire, as its sixth investment and its first foray back into the competitive footwear industry.
FCP will work with Newton Running to ‘launch bold new strategic initiatives to introduce the authentic running shoe to a broader marketplace through innovative product design and Newton Natural Running educational programs.’
“Newton Running is the footwear partner we’ve been seeking for quite some time. It’s a brand that is disruptive in the marketplace, authentic and driven by technology,” said FCP Founding Partner Dan Fireman.
“This new investment speaks to the core of Fireman Capital Partners’ heritage and experience. We took Reebok from a fledgling UK running shoe brand and built it into a multi-billion dollar global business. Our expertise in design, development, sales & marketing will help bring Newton Running to the next level and beyond.”
Dan Fireman along with Joe Farina, an FCP partner, led negotiations with Newton Running. Dennis Baldwin and Steve Liggett, both formerly of Reebok, will represent Fireman Capital Partners on Newton Running’s board of directors. Baldwin’s firm Breakaway Ventures will also participate in the investment as well as provide guidance to the company on strategic branding and marketing.
“Paul’s expertise in the athletic footwear industry, combined with our innovative technology, will be a powerful partnership,” said Newton Running’s CEO Jerry Lee.
“Newton Running’s patented technology is designed to allow runners to run as if they were barefoot, landing on their midfoot/forefoot instead of landing on their heels. This is the most natural way to run, increasing running efficiency and decreasing impact stress on the body. Newton Natural Running helps athletes run faster while lowering their risk of injury. Newton Running is the favoured shoe among several of the world’s top endurance athletes, triathletes and is also rapidly growing with runners of all ability around the world.”
Under Paul Fireman’s leadership, Reebok introduced the first athletic shoe designed specifically for women, igniting a women’s fitness revolution in the mid-1980s and turning Reebok into one of the most recognized brands in the world, expanding to over 170 countries and generating more than US$4 billion in revenue.
“We’re going to have a significant stake [in Newton Running],” Fireman told the Boston Herald. “We’ll have influence over the company, its direction and operations. It’s great when you can take those skill sets that you’ve learned and done for years and apply them to a company that you really understand.”
Newton Running reportedly generates around US$20 million in annual revenue and is growing at a rate of 100% a year. It is understood that Newton Running’s product range will also be expanded to include lower-cost shoes in the US$80 to US$100 range. The company’s shoes currently retail in North America for US$135 to US$175.
Newton Running Co joins a diverse and selective group in the Fireman Capital Partners investment portfolio, which also includes Hudson Jeans, Evolution Fresh, Serena & Lily, IdeaPaint and Pilla. FCP’s rebranding efforts for Hudson Jeans is seen an example of the firm’s expertise and unique ability to help clients grow.
Fireman Capital Partner Marla Sabo, former President & COO of Christian Dior Couture Americas, took the company and built it into a major fashion brand by developing new products, building out a seasonal collection with differing segmentation in the marketplace, and through the discovery of spokesmodel Georgia May Jagger, now considered a major presence in the world of fashion.
The Fireman Capital Partners (FCP) team is distinguished by a gathering of high profile business talents. Personally assembled by Paul Fireman, founder and former Chairman and CEO of Reebok International (a company he sold to Adidas for US$3.6 billion in 2006), they ‘demonstrate that when great minds from diverse fields come together around a common idea, the whole really is greater than the parts.’
From advertising gurus to financial wunderkinds, visionary entrepreneurs to expert operators, the members of the Fireman Capital Partners team run the gamut of experience. Exciting times for Newton Running indeed!
www.firemancapital.com
www.newtonrunning.com
