DTRT Apparel Announces Investment From Verod Capital and Red Bull
West Africa’s largest clothing manufacturer, DTRT Apparel Ltd (DTRT), today announced a major investment from leading investment firm Verod Capital Management and Red Bull GmbH, in a transformative deal for the West African apparel industry.
DTRT supplies cost-competitive products to major US and EU-based brands via a global network spanning three continents. The company employs over 2,000 people in West Africa, procures textiles from Asia and exports primarily to the EU and US markets, benefitting from supportive trade arrangements between the US/EU and Ghana.
The investment is a massive boost for apparel manufacturing in West Africa. Verod Capital is investing alongside a major strategic investor, Red Bull, the $7 billion producer of Red Bull energy drinks and one of the most innovative marketers in the world. Red Bull will be an anchor customer for DTRT, and DTRT will be a part of Red Bull’s global apparel sourcing operations.
DTRT Apparel was founded in 2013 by two apparel industry entrepreneurs in a joint venture with a renowned Ghanaian fashion entrepreneur, Mrs. Salma Salifu, Managing Director of Dignity DTRT, the company’s manufacturing partner. Founded on a commitment to “Do the right thing,” the company is an industry leader in sustainability and has a Gold-level Certificate from the Worldwide Responsible Accredited Production (WRAP) organization, verifying the company’s commitment to ethical manufacturing and employment practices. DTRT provides access to training and healthcare.
Environmental sustainability is also at the core of the DTRT business model. The business works with suppliers to produce a polyester fabric that requires 80% less water for dyeing than the traditional fabric-dyeing process. DTRT estimates they have saved over 200,000,000 litres of water over the last five years using this fabric. As a small example of its efforts to support their community, the Company utilizes leftover fabric from production for conversion into re-usable sanitary pads that are then provided free-of-charge to lower-income people in the nearby community.
Skip Richmond, co-Founder and co-CEO of DTRT Apparel said: “Given today’s global macro-economics, apparel brands are increasingly looking for cost competitive, socially responsible, long-term manufacturing alternatives outside Asia. This milestone deal is an affirmation of our vision of sustainable apparel manufacturing in Ghana – with the highest production, environmental and labour standards – and affords us the opportunity to significantly expand our production capacity and capabilities to make DTRT Africa’s leading apparel manufacturer. We’re very excited to work with our partners and strategic investors to drive growth and provide our value-added services on a larger scale to current and future customers.”
Danladi Verheijen, Verod Managing Director said: “Verod Capital’s investment in DTRT is predicated on the very rapid growth of the Ghanaian economy, due largely to its political stability, and Ghana’s unique advantages for cost-competitive production. The DTRT team are highly experienced operators who are also 100% committed to improving the lives of West Africans, which aligns with the mission of Verod Capital. We look forward to working with the Founders to build up this business but also to help West Africa become a major hub for apparel manufacturing.”
DTRT Apparel is a Ghana-based apparel manufacturer and exporter founded in 2013. The business employs over 2,000 staff, mostly women, at its facility in Accra and exports to customers in the US and the EU. The business has a rich pipeline of customers that can drive sales north of $100M in a few years. The company recently raised money from outside investors and is currently owned by the Founders, Verod Capital and RedBull GmbH. The Founders, Marc Hansult and Skip Richmond, were the former COO and CFO for a Hong-Kong based apparel company with over $100Min revenues. They founded DTRT in 2013 with the goal of building a sustainable enterprise that exceeds the typical labor, environmental and employment standards found in the apparel manufacturing industry.
ABOUT VEROD CAPITAL
Verod Capital is a Private Equity firm focused on investing equity and equity-linked capital in growth companies across various sectors, primarily in Anglophone West Africa. Verod seeks to partner with companies led by strong, result driven management teams able to grow large, sustainable and dominant enterprises. Verod manages over $200 million in assets and has invested in 18 middle-market high growth companies. Verod has been recognized by Private Equity Africa Awards as an “Outstanding New Fund Manager” and was named as one of the Top 20 Africa-focused PE Funds to watch in 2016.
ABOUT RED BULL
Founded in 1984, Red Bull GmbH is an Austrian company that produces the signature Red Bull energy drink. The company is known for its innovative marketing, and sponsorship of a range of sporting events and teams. In 2018, a total of 6.8 billion cans of Red Bull were sold worldwide in over 171 countries. The headquarters of Red Bull GmbH are in Fuschl am See, Austria. Source: PR News Wire