Mill Road Capital has signed an agreement to acquire all of the outstanding shares of R.G. Barry Corporation for $19 per share in cash, reflecting an equity value of approximately $215 million. The company had TTM revenues at March 31st of approximately $140 million and TTM EBITDA of $20 million.
The merger agreement permits R.G. Barry to solicit alternative acquisition proposals from third parties through May 31, 2014 and R.G. Barry intends to do so under the direction of its Board of Directors and with the assistance of its financial advisor, Peter J. Solomon Company.
R.G. Barry Corporation (NASDAQ: DFZ) designs, develops and markets footwear, handbags, and foot care products for women in North America. The company offers slippers and sleepwear products, totes, insoles and comfort products, travel accessories, and leg and footwear products. The company’s products are sold through national chains, mass merchants, warehouse clubs, department stores, independent and specialty retailers, boutiques, catalogs, home shopping networks, and online retailers. R.G. Barry Corporation was founded in 1947 and is headquartered near Columbus in Pickerington, OH (www.rgbarry.com).
“We have been a shareholder of R.G. Barry for many years and are pleased to increase our existing 9.8% stake in this great company,” said Scott Scharfman, Managing Director of Mill Road. “We have great confidence in the outstanding senior management team led by Greg Tunney and believe in their ability to successfully implement the long term strategic plan.”
Mill Road Capital is a private investment firm focused on investing in and partnering with publicly traded micro-cap companies in the US and Canada. The firm currently has over $600 million of assets under management. Mill Road Capital was founded in 2004 and is based in Greenwich, CT (www.millroadcapital.com).
“Mill Road has a clear understanding of our vision for the business. As a privately-held company, we expect to continue to invest in the long-term growth and acquisition strategies that we believe will propel RG Barry Brands into a true leader in the accessories marketplace. We look forward to this partnership,” said Greg Tunney, R.G. Barry chief executive officer and president.
© 2014 PEPD • Private Equity’s Leading News Magazine • 5-6-14