Group Acquires Pacific Trail

Pacific Trail Inc., one of Seattle's oldest apparel companies, has been sold to a group that includes current senior managers and prominent Chicago investors, the company announced today.

The Mounger family, which has controlled the company since its founding in 1945, is giving up control, and company president Ronald Epperson will succeed Larry Mounger as chief executive officer.

Terms of the sale were not disclosed.

The company employs 150 people. No changes in the work force are anticipated.

The new owners include Chicago-based GKH Retailing Inc., a wholly owned subsidiary of GKH Partners. GKH's degree of ownership was not disclosed.

GKH represents investors Jay and Tom Pritzker, Dan Lufkin and Mel Klein. Jay and Tom Pritzker are private investors and chairman and president, respectively, of the Hyatt Corp. Lufkin is a founder of the investment banking firm Donaldson, Lufkin & Jenrette; a former governor of the New York Stock Exchange; and has been involved in the acquisition of many businesses. Klein, an attorney and private investor, has been involved in the successful formation and development of numerous companies, according to a news release.

Pacific Trail is a nationally recognized manufacturer of outerwear. The company's labels include Pacific Trail, Inside Edge, Pierson Outfitters, Northern Exposure and Lookout.

In a prepared statement, Larry Mounger said the affiliation with GKH will enable Pacific Trail to build on the company's quality and service standards and increasing name recognition.

"Combining the depth of Pacific Trail's senior management team with the resources of GKH Partners brings new opportunities to the company, its customers and employees," Mounger said. "Pacific Trail has served retailers for nearly 50 years, and the company will continue to be known as a single-source supplier of quality, brand-name outerwear."

In addition to Epperson and GKH, the other members of Pacific Trail's senior management team and investor group include: James Cyr, vice president-ski and outdoor division; Daniel Givens, vice president-sourcing; Michael Green, vice president-operations and sales administration; Gary Hansen, vice president-merchandising; Sookil Oh, Pacific Trail's overseas agent; and Robert Wendell, vice president and national sales manager.

"With an average of more than 15 years experience in the apparel industry, Pacific Trail's executive corps is one of the industry's most experienced and seasoned management teams," said Lufkin, a general partner of GKH Partners L.P. and chairman of PTI Holding Corp., the company formed to acquire Pacific Trail. "The depth and commitment of the company's management will serve as the cornerstone for the further development of Pacific Trail's respected franchise and was a key determinant in GKH's investment decision, as an active investor in management-led buyouts."

Founded in 1945 by Lowery Mounger Sr., Pacific Trail began with 10 employees and six power machines to capitalize on growing demand for men's and boys' outerwear at the end of World War II.

Under the guidance of the Mounger family, the company expanded into the women's and girls' markets in 1968, and has grown to become one of the most respected brand names in the outerwear industry.