Bruckmann, Rosser, Sherrill & Co. and Palladin Consumer Retail Partners have formed InMotion Entertainment Group and acquired all of the InMotion Entertainment, Soundbalance, and Headphone Hub branded entertainment and electronics airport retail businesses from Project Horizon, a subsidiary of Gate Petroleum Company.
“We have been very impressed by CEO Jeremy Smith and his management team, who have successfully increased the company’s market share and strengthened its position in airport retail. They have grown successfully by providing travelers with a broad selection of products and a great shopping experience,” said Tom Baldwin, a Managing Director of Bruckmann, Rosser, Sherrill & Co.
InMotion Entertainment Group is an airport-based retailer of headphones, mobile device accessories and other consumer electronics. The company operates nearly 80 locations in airports across the United States under the InMotion Entertainment, Soundbalance, and Headphone Hub banners. Products sold include electronics, including tablets, digital cameras, portable power, and noise-canceling headphones. InMotion Entertainment has exclusive airport partnerships with Beats by Dr. Dre, Bang & Olufsen, and Samsung. The company is based in Jacksonville (www.inmotionstores.com).
“Consumers are increasingly shopping at retail stores in airports and consumer electronics is one of the fastest-growing segments within airport retail,” said Mark Schwartz, CEO of Palladin. “As one of the best-in-class operators, and one that caters to a very attractive demographic base, we believe InMotion has a tremendous opportunity to grow both domestically and abroad.”
Bruckmann, Rosser, Sherrill & Co. and Palladin have partnered in the past, most recently for Things Remembered, a retailer of personalized gifts with 600 stores worldwide, which they owned together from 2006 to 2012.
Bruckmann, Rosser, Sherrill & Co. (BRS) invests in middle market consumer goods and services businesses and has $1.4 billion of committed capital under management. Since 1996, BRS has purchased over 40 portfolio companies for aggregate consideration of over $6.4 billion. In addition, BRS portfolio companies have completed approximately $1.9 billion of add-on acquisitions. Prior to forming the firm, the founders of BRS were in the financial acquisition business at Citicorp Venture Capital where they closed 25 transactions with aggregate transaction values totaling $5.8 billion. The firm is based in New York (www.brs.com).
Palladin Consumer Retail Partners, previously known as Palladin Capital Group, invests exclusively in retail and consumer products companies in North America and Europe that have revenues ranging from $50 million to $500 million. Palladin invests from $10 million to $50 million of equity capital in each transaction. Palladin is investing out of its current fund which was closed in April 2012. The firm was founded in 1998 and is based in Boston (www.pcrp.com).
Fifth Street Finance provided debt financing and co-invested in the equity in the transaction. Wells Fargo Securities acted as the exclusive financial advisor and Holland & Knight acted as legal advisor to Project Horizon.
© 2013 PEPD • Private Equity’s Leading News Magazine • 10-4-13