Capstone Juvenile Report Mar2012 Final Juvenil… · and marketer of innovative high quality brand...

Juvenile ProductsCoverage Report

“Market Intelligence for Industry Players” Q1 2012

Investment Banking AdvisorsCapstone Partners

BOSTON | CHICAGO | LOS ANGELES | PHILADELPHIA

2011 M&A COMMENTARY

M&A activity in the juvenile products market has been consistently strong throughout

2010 and 2011 with 76 deals reported for the two years. There was a marked decline in

activity in 2009 as companies were more focused on organic growth versus growing via

acquisitions during the recessionary economic period. There is currently an elevated

interest from both buyers and sellers in the industry, and M&A activity remained strong

in 2011 with 32 announced transactions during the year, 10 more than in 2009. As the

juvenile products industry becomes more competitive, major players are seeking to

capture market share via acquisitions.

Transactions in this space have been driven by improving market conditions and revival of

demand, as well as an interest in product portfolio diversification. An important driver is

also brand recognition; firms are willing to pay top‐dollar for well known and trusted

brands.

INDUSTRY OVERVIEW

The U.S. juvenile products industry is a $17.8 billion market, which is comprised of

companies engaged in the manufacturing of durable goods for children from infancy to

age five. Juvenile products include cribs, high‐chairs, baby bedding and linens, strollers,

car seats, carriages and toys targeted specifically to infants and toddlers. Growth in this

industry is driven primarily by changes in consumer spending, domestic birth rates, the

popularity of second‐hand marketplaces and perceptions of necessity among consumers

for various juvenile products.

Juvenile ProductsCoverage Report

1

CAPSTONE PARTNERS LLC176 Federal Street

3rd FloorBoston, MA 02110

www.capstonellc.com

John FerraraPresident, Managing Partner

Direct (617) 619‐[email protected]

Kevin JolleyManaging Director


Jacob VoorheesDirector, Principal


Sophea ChauSenior Associate


3 4

8 7

22

15

11 11

7

44

8

13

6 5

32

0

5

10

15

20

25

30

35

40

45

Q1 Q2 Q3 Q4 Total

2009

2010

2011

Juvenile Products Transactions by Quarter

Source: Capital IQBased on announced date and includes M&Atransactions in North America and Europe

Q1 2012 Juvenile Products

2

The recessionary period in 2008 and 2009 marked a stark decline in both disposable

income and consumer expenditures. According to the U.S. Bureau of Labor Statistics

(BLS), while pre‐tax income declined 1.1% from 2008 to 2009, consumer

expenditures declined 2.8%, and expenditures for discretionary items such as

apparel declined as much as 4.2%. As the economy and consumer confidence

continue to improve, demand for juvenile products should improve as well.

Furthermore, after peaking in 2007, births rates in the U.S. decreased from 14.3 to

13.7 births per thousand in 2009, a 4% decline. This is an important factor for

juvenile goods as it drives the size of the available market of children aged 0‐5.

According to the CIA World Factbook estimates, the birth rate in 2010 grew slightly

to 13.8 births per thousand.

The juvenile products industry is expected to grow 4.4% per year from 2010 through

2015 to reach a market size of $22.1 billion. Growth is primarily driven by the

expansion of the baby accessories segment, including items such as strollers, car

seats and baby monitors, which is expected to grow 5.9% annually through 2015.

For the same period, the other major segments, toys and furnishings, are expected

to grow 3.5% and 3.8%, respectively.

SAFETY & REGULATION

One of the most significant factors affecting success in the juvenile industry is safety

certification. Because the end market is young children and infants, safety concerns

are among the most important considerations in purchasing decisions. Unsafe

designs or materials in this industry can result in high‐profile recalls and damaged

brand names. Regulations on juvenile products typically impose limitations based on

two product characteristics: design and material.

$30

$31

$32

$33

$34

$35

$36

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

'06A '07A '08A '09A '10A '11E '12E '13E '14E '15E($ thousands)

Disposable Income

Reven

ue

($ billions)

Furnishings Accessories Toys Disposable Income

Juvenile Products Industry Revenue (2006‐2015)

Source: Packaged Facts, IBIS World

“As the economy and

consumer confidence continue

to improve, demand for

juvenile products should

improve as well.”

INDUSTRY TRENDS

The juvenile goods industry is subject to a number of factors that affect both top and

bottom line performance. Among these factors are a competitive second‐hand

market, birth rates and consumer spending. These factors are related to movements

in the overall economy, and are expected to drive growth in the industry looking

forward over the next five years as the economy continues to rebound.

Birth Rates – Demand for juvenile products is unsurprisingly driven by the number of

children aged 0‐5 in the population at any given time. The number of infants born in

the United States peaked in 2007 at 4.3 million births, before declining 3% to 4.1

million in 2009; in 2010, births began to rebound to nearly pre‐recession levels. New

births in the United States are expected to continue to grow at about 40,000

additional births each year into the foreseeable future, representing a growth rate of

approximately 1% annually through 2015. As the number of newborns increases, the

juvenile products market is expected to expand as well.

Second‐hand Market – The marketplace for second‐hand juvenile products

expanded considerably during the recession in 2008 and 2009, which has resulted in

a decline in sales for juvenile product manufacturers and traditional retailers. Due to

their high durability and limited useful life per consumer, juvenile products are a

popular product to be purchased second‐hand from tag‐sales, consignment shops or

other second‐hand online retailers such as Craigslist or eBay. Not all juvenile

products are as susceptible to second‐hand resale. Baby furniture has the highest

incidence of second‐hand purchases or borrowing, whereas car seats, strollers and

carriers are most likely to be purchased new due to safety concerns associated with

these products. Popularity of the second‐hand market thrives when the economy

experiences a downturn, as in 2008 and 2009, but is expected to decline as the

economy continues to rebound, which should drive demand for new juvenile

products going forward.

Increasing Role of the Internet – In the retail market, online sales are by far the

fastest growing channel, expected to steal 7% of retail sales from traditional retailers

by 2015. This conversion to Internet retail is not limited to juvenile products and is

driven by consumers seeking maximization of value and convenience. Online

retailers often offer lower prices and easy price comparison across brands and

retailers. In addition, Mintel reports that 76% of mothers utilize the Internet when

evaluating options prior to purchase. During the five years to 2015, the role of the

Internet is expected to become more pronounced, and web presence will become a

competitive advantage for brands competing in the juvenile products space.

“Age Compression” in Children’s Toys – Specific to the toy segment is the “age

compression” phenomenon, wherein children outgrow child/infant toys at

increasingly younger ages. This trend is largely influenced by the influx of more

sophisticated video game systems into the younger age market. The effect of age

compression is stagnant demand and a need for toys that can compete or

complement virtual and interactive toys and games. The impact of age compression

can be witnessed in the toy segment performance over the last five years, posting

moderate gains of only 2.0% annually, below the industry growth rate of 3.3%.


3

Annual births, expected to

grow 1% annually, and

rebounding market

conditions should

contribute to a boost in

demand for juvenile

products over the next five

years.

SELECTED JUVENILE PRODUCTS M&A TRANSACTIONS


4

LTM = last twelve months; EV = enterprise value; CF = confidential

Transactions highlighted in yellow were completed by Capstone Partners

Source: Capstone Research, Capital IQ, company public filings and press releases

EnterpriseValue (mm)

EV / LTM

Date Target Acquiror Target Business Description Revenue EBITDA

12/25/11 Baby Trend, Inc. GIA Investments Corp. Manufactures juvenile products. ‐ ‐ ‐

11/21/11 Orbit Baby, Inc.The ERGO Baby Carrier, Inc.

Offers a stroller travel system, bassinet cradle, base, infant car seat, toddler car seat, stroller seat, sidekick stroller board and accessories.

$17.5 ‐ ‐

10/20/11 BOB Trailers, Inc. Britax Group Ltd.Engages in the design, manufacture, and sale of strollers, trailers, and accessories for babies.

CF CF CF

09/19/11 ImagiPlay, Inc. BeginAgain, Inc. Designs, produces and markets high‐quality and eco‐friendly educational toys.

‐ ‐ ‐

06/16/11Rhino Toys, Inc. and Taggies, Inc.

Kids II, Inc. Design, manufacture, and market toys and baby care products. ‐ ‐ ‐

05/31/11 Chariot Carriers Inc. Thule ABDesigns, produces, and supports child carrier products, including rolling strollers, bicycle trailers, hiking trailers, and side carriers.

‐ ‐ ‐

05/23/11 Svan of Sweden AB Scandinavian Child, LLCDesigns, manufactures and markets high chairs, bouncers, scooters, mini furniture and baby covers.

‐ ‐ ‐

04/18/11Tullsa AB and Sun Toy AB

ValueTree Holdings ABDevelops and manufactures equipment for strollers and distributes toys.

‐ ‐ ‐

03/28/11BornFree Holdings Ltd.

Summer Infant (USA), Inc.

Develops and manufactures baby feeding bottles, training cups, drinking cups and other baby accessories.

$24.6 1.6x NM

03/10/11 RC2 Corporation Tomy CorporationDesigns, produces, and markets toys, collectibles, and infant and toddler products.

$625.4 1.5x 11.1x

02/04/11SaraBear Company LLC

Munchkin, Inc. Produces diaper caddies. ‐ ‐ ‐

12/22/10 Baby Solutions SALansinohLaboratories, Inc.

Develops and markets baby feeding products under the brand name mOmma.

$4.2 2.2x ‐

11/21/10Britax Childcare Holdings Ltd.

Nordic CapitalDesigns, assembles, manufactures and markets child safety car seats, including infant carriers, child safety seats and wheeled goods.

$720.1 2.2x ‐

10/15/10 Beaba S.A.SEdmond de Rothschild Capital Partners

Manufactures and sells feeding bottles and warmers, sterilizers, and teats, suction products, bed time products and security products.

$168.4 3.4x ‐

09/17/10The ERGO Baby Carrier, Inc.

Compass Diversified Holdings

Manufactures and markets infant inserts, front pouches, back packs, changing pads, sucking pads, weather covers and hood replacements.

$91.0 ‐ 7.0x

08/04/10 JJ Cole Collections RC2 CorporationDevelops and markets mother, infant, and toddler stylized travel, storage, and convenience products

$40.0 2.6x ‐

01/14/10 Lindam Limited Munchkin, Inc.Designs, develops, and manufactures child safety products, such as safety gates, bed guards, play pens, and door bouncers and monitors.

‐ ‐ ‐

12/08/09 Classy Kid, Inc. Summer Infant, Inc.Classy Kid, Inc. manufactures and markets accessories for baby and toddler healthcare.

‐ ‐ ‐

07/02/09 Neat Solutions, Inc. Hamco, Inc.Provides disposable placemats, floor mats and carpets, car seat covers, burp cloths, absorbent pads, changing pads and bibs.

$4.4 ‐ ‐

06/16/09 NettoCollection, LLC Maclaren USA Inc.Designs and manufactures juvenile furniture including cribs and crib mattresses, dressers, changers and related accessories.

‐ ‐ ‐

04/01/08 LaJobi Industries, Inc. Kid Brands, Inc.Designs, engineers, markets and distributes baby and children furniture and accessories.

$68.8 1.1x 7.7x

Mean 2.0x 8.3x

Median 2.0x 7.5x

Harmonic Mean 1.8x 8.0x

SELECTED NOTABLE TRANSACTIONS

Britax Group Ltd. acquires BOB Trailers Inc. – BOB Trailers is a leading manufacturer

and marketer of innovative high quality brand of jogging strollers. Britax Group,

based in Chertsey, U.K., is a manufacturer and marketer of children car safety seats

and strollers. The cross‐border transaction between BOB and Britax combined two

segment leaders with tremendous brand recognition and broad global distribution

channels. Capstone Partners represented the shareholders of BOB Trailers in the

transaction.

Summer Infant, Inc. (NASDAQ:SUMR) acquires Bornfree Holdings – Bornfree is a

BPA‐free baby feeding product producer, and offers baby feeding bottles; toddler

training cups, drinking cups and straw cups; teething and soothing products such as

pacifiers and teethers; breastfeeding pumps; and accessories including sterilizers,

formula dispensers, twister brushers and silicone sleeves. In March 2011, Summer

Infant acquired the company for approximately $25 million in order to enter the

higher margin baby feeding industry and diversify its product portfolio.

Tomy Company, Ltd. acquires RC2 Corporation – RC2 Corporation designs, produces

and markets toys, collectibles and infant and toddler products. The company offers

infant and toddler feeding gear, care and play products under the First Years and

Lamaze brands, as well as breast pumps, baby monitors and convertible car seats.

The company offers toys under Learning Curve, Johnny Lightning, Thomas & Friends

and Ertl brands. Tomy Corporation, a subsidiary of Tomy Co. Ltd. acquired the

company for $625 million in March 2011 to add the Thomas the Tank Engine brand

to its portfolio which includes Pokémon and Transformers. The company sought to

revive sales when declining birthrates eroded Japanese demand.

Lansinoh Laboratories, Inc. acquires Baby Solutions, SA – Baby Solutions SA

produces baby feeding and drinking products such as specialty bottles, spoons,

plates, soothers and bags under the mOmma brand. In January 2011, Lansinoh

Laboratories acquired the company for $4.2 million due to the attractiveness of the

mOmma brand and the juvenile products market.

Nordic Capital acquires Britax Childcare Holdings ‐ Britax designs, assembles and

markets child safety car seats including infant carriers, child safety seats, strollers,

children’s car seats and wheeled goods. The company was acquired by Nordic

Capital in line with the buyout firm’s strategy of investing in automobile components

and accessories. This acquisition (November 2010) represents the largest transaction

in this space in 2010 and 2011, having an implied enterprise value of £450 million

(approximately $720 million).

Edmond de Rothschild Capital Partners acquires Beaba SAS ‐ Beaba manufactures

and sells baby products including feeding products such as bottles and warmers,

sterilizers and teats; suction products, such as soothers; bouncing chairs and

accessories; baby changing bags; bath and toilet products; bedtime products and

child‐proof locks. The company was acquired by Edmond de Rothschild Capital

Partners for $168 million in October 2010, nearly 3.5 times the company’s revenues

for the year prior.


5

PUBLIC COMPANY TRADING & OPERATING DATA


6

Source: Capital IQ as of December 30, 2011

Last Twelve Months 1‐Year Revenue Growth

Price % 52 Wk. Market Enterprise LTM 1‐Yr Rev EV / LTM

Company 12/30/11 High Cap Value Revenue EBITDA Margin Growth Revenue EBITDA

Crown Crafts Inc. $3.29 63.0% $ 31.8 $ 32.8 $ 88 $ 8 9.6% 0.5% 0.4x 3.9x

Dorel Industries Inc. $25.13 72.6% 802.4 1,106.4 2,342 164 7.0% 1.0% 0.5x 6.8x

Hasbro Inc. $31.89 63.6% 4,113.3 5,324.5 4,235 746 17.6% 3.3% 1.3x 7.1x

Kid Brands, Inc. $3.16 32.4% 68.4 131.9 265 10 3.9% ‐1.2% 0.5x 12.8x

LeapFrog Enterprises Inc. $5.59 90.5% 368.0 342.3 435 29 6.6% 0.8% 0.8x 12.0x

Mattel Inc. $27.76 94.4% 9,400.8 10,343.1 6,237 1130 18.1% 9.7% 1.7x 9.2x

Newell Rubbermaid Inc. $16.15 79.2% 4,675.4 6,854.6 5,912 876 14.8% 4.9% 1.2x 7.8x

Summer Infant, Inc. $7.04 74.3% 122.7 184.7 234 18 7.7% 28.0% 0.8x 10.2x

EV = enterprise value; LTM = last twelve months Mean 10.7% 5.9% 0.9x 8.7x

$ is millions, except per share dataMedian 8.6% 2.2% 0.8x 8.5x

Harmonic Mean 8.3% NA 0.7x 7.7x

Margin Performance

0.5% 1.0%3.3%

‐1.2%

0.8%

9.7%

4.9%

28.0%

‐5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Crown Crafts DorelIndustries

Hasbro Kids Brands LeapFrog Mattel NewellRubbermaid

Summer Infant

21.2% 21.9%

49.7%

25.4%

41.2%

49.4%

37.4%34.3%

9.6%7.0%

17.6%

3.9%6.6%

18.1%14.8%

7.7%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Crown Crafts DorelIndustries

Hasbro Kids Brands LeapFrog Mattel NewellRubbermaid

Summer Infant

Gross Margin % EBITDA Margin %

PUBLIC COMPANY PROFILES

Crown Crafts Inc. (NASDAQ:CRWS) offers infant and toddler products primarily in the

United States. The company produces crib and toddler bedding; blankets; nursery

accessories; room décor; burp cloths; bathing accessories; disposable placemats,

covers and changing mats; reusable bibs and floor mats. The company was founded

in 1957 and is headquartered in Gonzales, Louisiana.

Dorel Industries, Inc. (TSX:DII.B) designs, manufactures, markets and distributes

various consumer products in the United States, Canada and Europe and operates in

three segments: Juvenile Products, Recreational/Leisure and Home Furnishings. In

the Juvenile Products segment, the company offers car seats, strollers, high chairs,

toddler beds, playpens, swings and infant heath and safety aids under the Cosco,

Safety 1st, Maxi‐Cosi, Quinny, Babideal, Bebe Confort, Baby Relax and MonBebe

brand names. The company’s Recreational/Leisure segment offers bicycles, jogging

strollers and athletic gear. The Home Furnishings segment produces ready‐to‐

assemble furniture, futons, ladders, home theatre units and other imported furniture

items. The company was founded in 1962 and is headquartered in Montreal,

Canada.

Hasbro, Inc. (NASDAQ:HAS) designs, manufactures and markets games and toys.

The company offers various games including traditional board, card, hand‐held

electronic, trading card, roleplaying and DVD games; and electronic learning aids and

puzzles. The company also offers a wide array of toys including boy’s action figures,

vehicles and play sets; girl’s toys; electronic toys, plush products, preschool toys and

infant products; electronic interactive products; creative play products; and toy

related specialty products. The company also licenses certain trademarks, characters

and other property rights to third parties. It offers its products under Playskool,

Transformers, Nerf, My Little Pony, Littlest Pet Shop, Tonka, G.I. Joe, Super Soaker,

Milton Bradley, Parker Brothers, Cranium, Avalon Hill, Tiger, Furreal Friends, Baby

Alive, Strawberry Shortcake and Wizards of the Coast brand names. The company

also has strategic agreements with Electronic Arts Inc. and Universal Pictures. The

company was founded in 1923 and is headquartered in Pawtucket, Rhode Island.

Kid Brands, Inc. (NYSE:KID) designs, imports, markets and distributes infant and

juvenile consumer products. The company produces infant bedding, nursery

accessories and décor such as blankets, rugs, mobiles, nightlights, hampers, lamps

and wall art under the Kids Line and CoCaLo brands; cribs, mattresses and other

nursery furniture under the Babi Italia, Europa Baby, Bonavita, Graco and Serta

brands; and developmental toys, feeding, bath and baby care items under the Sassy

brand names. The company was founded in 1963 and is based in East Rutherford,

New Jersey.


7

LeapFrog Enterprises, Inc. (NYSE:LF) provides technology‐based learning platforms

worldwide. It provides reading systems, educational gaming products, electronic and

interactive games and toys and an online tool that helps parents track what their

children are learning with its Web‐connected products. The company was founded in

1995 and is headquartered in Emeryville, California.

Mattel, Inc. (NASDAQ:MAT) designs, manufactures and markets various toy products

worldwide. It produces fashion dolls and accessories, vehicles and play‐sets and

games and puzzles. The company offers its toys under a number of brands including

Barbie, Polly Pocket, Little Mommy, Disney Classics, Monster High, Hot Wheels,

Matchbox, Battle Force 5, Tyco R/C, CARS, Radica, Toy Story, Max Steel, WWE

Wrestling and Batman. For its younger audience, the company offers toys under the

Fisher‐Price, Little People, BabyGear, View‐Master, Dora the Explorer, Go Diego Go!,

Thomas and Friends, Sing‐a‐ma‐jigs, See ‘N Say and Power Wheels brand names. The

company also offers dolls under My American Girl and Bitty Baby brands. The

company was founded in 1945 and is headquartered in El Segundo, California.

Newell Rubbermaid, Inc. (NYSE:NWL) designs, manufactures, sources, packages and

distributes consumer and commercial products and is engaged in three segments:

Home & Family, Office Products and Tools, and Hardware & Commercial Products.

The Home & Family segment offers juvenile products such as car seats, strollers,

highchairs and play‐yards, as well as cookware, bake ware, small kitchen electronics,

grooming products and home décor. The Office Products segment offers writing

instruments, office technology solutions and art and office organization products.

The Tools, Hardware & Commercial Products segment offers hand tools, power tool

accessories, window hardware and cleaning and refuse products. The company

markets its products under Rubbermaid, Graco, Aprica, Levolor, Calphalon, Goody,

Sharpie, Paper Mate, Dymo, Parker, Waterman, Irwin, Lenox and Technical Concepts

brand names, and was founded in 1903 with its headquarters in Atlanta, Georgia.

Summer Infant, Inc. (NASDAQ:SUMR) designs, markets and distributes branded

juvenile health, safety and wellness products in North America and the United

Kingdom. The company offers nursery audio/visual monitors, safety gates, durable

bath products, bed rails and related health and safety products, booster seats, potty

seats, bouncers and a line of soft goods and baby bedding. It also offers cribs, baby

gear, infant sleep positioners, head supports, portable changing pads and nursery

and feeding accessories. The company is headquartered in Woonsocket, Rhode

Island and was founded in 1984.


8


9

THE JUVENILE PRODUCTS TEAM

John Ferrara, President and Managing Partner

[email protected] • (617) 619‐3325

John Ferrara, the founder and principal shareholder of Capstone, serves as the firm's President

and Managing Partner. Over his extensive career in investment banking, venture capital and

management consulting, John has executed over 100 related engagements representing in

excess of $6 billion in value. John was formerly a Regional Managing Partner with Andersen

Corporate Finance, where he founded the Boston office and held various national and global

leadership positions. He started his career in Lehman's Brothers' M&A group in New York,

London and Riyadh, later becoming a founding member of Rodman & Renshaw's M&A

practice in New York. He earned an MBA in Entrepreneurial Studies from The Anderson School

at UCLA and the London School of Economics, during which time he founded and operated a

corporate finance advisory boutique, JG Atlas Advisors, and its related investment arm,

Atlantis Capital Partners. He holds dual BA degrees from Wesleyan University and is qualified

as a General Securities Principal.

Kevin Jolley, Managing Director


Kevin has over 18 years of investment banking, syndicated bank loan and corporate finance

experience. He leads Capstone's Consumer & Industrial Products practice and is a member of

the Board of Directors. His transaction experience includes managing complex engagements

for clients in a variety of industries including consumer products, industrial products, medical

devices, biotechnology, business services, software, and distribution. Prior to joining Capstone,

Kevin served as a Vice President in the Investment Banking Group at Adams Harkness. Kevin

also served as an Associate in the Debt Capital Markets Group of FleetBoston Robertson

Stephens, Inc. Before Fleet, Kevin was at Textron Inc. where he worked in the Strategic

Planning, Internal Audit and Mergers & Acquisitions departments. He also has four years of

finance experience with Oracle Corporation. Kevin received his B.A. from Brown University

and his M.B.A. from the University of Pennsylvania’s Wharton School. He is registered with

FINRA and is qualified as a General Securities Representative.

Jacob Voorhees, Director and Principal


Jacob is a founding member of Capstone Partners and focuses on asset positioning, strategy

articulation, due diligence and negotiations coordination. Formerly, Jacob was with Andersen

Corporate Finance LLC, where he focused his efforts on the software and direct marketing

industries. He started his career in New York City with Rabobank International, a multi‐

national Dutch investment bank headquartered in Utrecht, the Netherlands. While at

Rabobank International, Jacob worked in the mergers and acquisitions group focusing on

cross‐border transactions in the consumer products, food and beverage industries. Jacob holds

dual BS degrees from Cornell University and is qualified as a General Securities Representative.

Sophea Chau, Senior Associate


Sophea joined Capstone in 2008 and specializes in mergers & acquisitions, private placements

and financial advisory services. Her responsibilities include providing financial and valuation

analysis, performing due diligence and drafting all marketing materials. Prior to joining

Capstone, Sophea was an analyst at FTN Midwest Securities, a full‐service investment banking

firm based in Cleveland. While working in their New York office, she focused on M&A advisory

for middle‐market companies in a variety of industries, including healthcare, pharmaceutical

services and marketing & advertising. Sophea is on the Board of the Columbia University Club

of New England and is the Chairperson of the Boston Columbia College Young Alumni group.

Sophea holds a Bachelor of Arts in Economics from Columbia University.


10

CAPSTONE PARTNERS ADVISES BOB TRAILERS ON SALE TO BRITAX GROUP

Chertsey, U.K. ‐ November 14, 2011 ‐ Capstone Partners LLC, a leading national

investment banking firm, announced that it has successfully advised BOB

Trailers, Inc. on its acquisition by Britax Group Limited, a portfolio company of

Nordic Capital Fund VII. The transaction marks the international unification of

two of the top brands in the juvenile products category. The terms of this

transaction were not disclosed.

Headquartered in the UK with major facilities in the UK, Germany, Australia and

the U.S., Britax is the world’s premier brand for children car safety seats and

strollers. Britax successfully expanded into the stroller market by launching its B‐

range of strollers in recent years (B‐Ready, B‐Smart, B‐Mobile and B‐Scene). The

company complemented its stroller offering earlier this year when it introduced

its innovative, quick‐folding B‐Agile stroller. Britax car seats and strollers are sold

globally in all major retailers and specialty stores. Additional information about

Britax can be found at www.britax.com.

BOB, which began in 1994 as a manufacturer of bicycle trailers, is widely

considered America’s premier provider of innovative, design oriented high

quality “sport utility” or jogging strollers. BOB’s line of successful products

include the BOB Revolution SE and CE as well as BOB Ironman®, BOB Sport Utility

Stroller and the BOB Stroller Strides®*Fitness Stroller. Based in Boise, Idaho,

the company now makes a full line of multi‐functional strollers and accessories

that is sold at retailers and specialty stores across the U.S. and Canada.

Additional information about BOB Trailers can be found at www.bobgear.com.

Karl Kahofer, CEO of Britax Child Safety, commented, “We’ve admired for some

time BOB’s ingenuity and commitment to customers and are convinced that its

products, customer service, and business ethics make it a natural fit for Britax.

This purchase reinforces Britax’s global leadership in child safety and mobility,

and is fully in line with our international growth strategy. We have no plans to

change the BOB name; in fact we are excited to expand the BOB product range

globally.”

BOB cofounder and CEO, Roger Malinowski, is equally enthusiastic about the

acquisition. “When we started this company more than fifteen years ago,” he

said, “we simply wanted to design and manufacture the world’s best single‐

wheel bike trailers, and later, the world’s best strollers for active, sports‐minded

parents. When you look at the thoughtful engineering behind the Britax stroller

line and the revolutionary design behind its car seats, you can see why our two

companies will fit well together.”

The Capstone M&A team of John Ferrara, Managing Partner, Jacob Voorhees,

Director, and Sophea Chau, Associate (based in Boston, MA), managed the

transaction on behalf of BOB. “Our consumer products group was very proud to

represent BOB Trailers in this landmark cross‐border transaction. We believe

the legacy that Roger Malinowski has built in the BOB brand will be expanded

globally through Britax’s broad international distribution channels.”

The undersigned represented

BOB TRAILERS, INC.

Capstone PartnersInvestment Banking Advisors

Capstone PartnersInvestment Banking Advisors

has been acquired by

DONE DEAL

a portfolio company of

ABOUT CAPSTONE PARTNERS

Capstone Partners LLC is a leading national investment banking firm dedicated to serving the corporate finance needs of middle marketbusiness owners, investors and creditors. The firm provides merger & acquisition, private placement, corporate restructuring, valuationand financial advisory services. Capstone maintains various industry specialties including business services, consumer products,education & training, government services, health & medical, manufacturing & industrial, and technology & media. The firm alsopossesses merchant banking capabilities to actively co‐invest in transactions.

Additional information about Capstone Partners can be found at www.capstonellc.com.

www.capstonellc.com

This image cannot currently be displayed.

© 2012 Capstone Partners LLC. All rights reserved.

NATIONAL AND REGIONAL LEADERSHIP TEAM

NATIONAL NORTHEAST REGION CORPORATE RESTRUCTURING

John Ferrara Kevin Jolley Brian Davies

President, Managing Partner Managing Director Managing Director

(617) 619‐3325 (617) 619‐3330 (617) 619‐3328

[email protected] [email protected] [email protected]

MIDATLANTIC REGION VALUATION ADVISORY

Eric Williams Ron Adams

Managing Director Managing Director

(215) 854‐4065 (617) 619‐3367

[email protected] [email protected]

MIDWEST REGION

Ted Polk

Managing Director

(312) 674‐4531

[email protected]

WESTERN REGION

David Bench

Managing Director

(949) 460‐6431

[email protected]

Capstone Juvenile Report Mar2012 Final Juvenil… · and marketer of innovative high quality brand...

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Transcript of Capstone Juvenile Report Mar2012 Final Juvenil… · and marketer of innovative high quality brand...