Montreal, PQ – April 10, 2012 – DAVIDsTEA, a leading retailer of loose leaf teas, today announced a $14 million (CAD) minority investment led by the Highland Consumer Fund.
The company was founded by Herschel and David Segal in 2008. Its teas range from traditional to exclusive blends and unique flavors, and products carefully sourced from around the world. The company has rapidly grown to more than 75 stores across Canada and has also entered the U.S. with 2 stores in New York City.
The Highland Consumer Fund will be joined in its financing round by Chip Wilson, the founder & former CEO of Lululemon Athletica. Their strategic investment in the business will be used to continue the company’s strong revenue gains and help fuel the growth of retail operations across North America. As part of this, DAVIDsTEA will establish a U.S. headquarters.
Herschel Segal will continue to serve as Chairman of DAVIDsTEA and will be joined on the Board by David Segal, Jane Silverstone Segal, Sarah Segal (now interim President) and Javier San Juan, President of L’Oreal Canada. In addition, Chip Wilson and Tom Stemberg, Managing General Partner at Highland and founder and former CEO of Staples, will also be joining the Board of Directors. “DAVIDsTEA offers a strong brand, exceptional products and compelling customer experience that is shared with many of the other top retailers that I’ve been fortunate to work with,” said Tom Stemberg. “Both Chip and I look forward to a strong partnership and sharing lessons learned.”