Bain Capital to buy majority stake in Bob's Discount Furniture
December 30, 2013-- Furniture Today,
Bob's management team will continue to own a significant stake in the company and existing management, including CEO Ted English, will stay in place, officials said.
Terms of the transaction were not disclosed.
Manchester, Conn.-based Bob's, which ranks No. 16 on Furniture/Today's Top 100 based on estimated 2012 sales of $685.3 million, has been majority owned by private equity firm KarpReilly/Apax for the past nine years. The retailer has 47 stores in nine Northeast and Mid-Atlantic states.
"We are thrilled to partner with Bain Capital, a firm that has been investing in great retail businesses and consumer brands for decades," said English. "Bain Capital brings the experience and resources we need to support our continued expansion to serve more customers in more places, and to provide opportunities for advancement for our people."
Bain Capital has a history of investments in a variety of retail and consumer businesses including Michaels Stores, Dunkin' Brands Group, Bombardier Recreational Products, Outback Steakhouse, Burlington Stores, Dollarama and Samsonite International.
"We are excited to partner with Ted English and the great management team at Bob's Discount Furniture to support continued growth in this dynamic business," said Tricia Patrick, a principal at Bain Capital. "We believe the company's quality furniture at deep value fills an important need in the market today, and along with the authenticity of the Bob's brand, should drive sustainable growth for years to come. We look forward to supporting the management team in executing their plan to grow and offer more customers the opportunity to shop at Bob's Discount Furniture."
Bob's and Bain Capital officials also said they share a commitment to community involvement, supporting the communities where its stores are located through a variety of charitable efforts.
The transaction is expected to close during the first quarter of 2014.
BofA Merrill Lynch is serving as financial advisor, and Ropes & Gray LLP is acting as legal counsel to Bob's Discount Furniture. Kirkland & Ellis LLP is serving as legal counsel, and PwC LLP is serving as accounting advisor, to Bain Capital. Financing for the transaction is being provided by RBC and UBS.