Brentwood Associates has acquired Marshall Retail Group (MRG), an operator of specialty retail stores that are located in high-foot-traffic locations, from ICV Capital Partners which acquired the company in 2008.
“Marshall Retail Group has a portfolio of proven, highly differentiated concepts,” said Rahul Aggarwal, managing director at Brentwood. “Furthermore, the company has demonstrated the ability to successfully innovate and create new retail concepts to meet its customers’ needs.”
Marshall Retail Group is a specialty retailer that operates stores in high-foot-traffic marketplaces such as casino resorts and airports. The company’s stores operate in three categories: logo and sundry stores; fashion apparel, footwear and accessories stores; and third party licensed brands. The company operates 155 retail locations across 10 states and Washington DC. Marshall Retail Group was founded in 1955 and is headquartered in Las Vegas (www.marshallretailgroup.com).
ICV Capital Partners first invested in Marshall in 2003 when it acquired the company from the founding Marshall family and then sold the business to Bruckmann, Rosser, Sherrill & Co. (BRS) in 2005. ICV reacquired Marshall from BRS in 2008 during the economic downturn and uncertainty about the Las Vegas casino market.
“When presented with the opportunity to re-acquire MRG we were extremely comfortable backing Michael Wilkins as CEO and the same management team we knew well from our previous investment,” said Cory Mims, a Managing Director of ICV Partners. “During our ownership we worked with them as the company continued to penetrate the core casino market resulting in record year-over-year store growth. In addition, MRG diversified into the airport retail sector which generated significant additional growth.”
In 2011 ICV completed a dividend recapitalization of MRG and returned approximately 53% of capital invested. According to ICV, the sale of MRG will result in an attractive return for the firm and its limited partners.
ICV Partners invests in family-owned and closely-held businesses as well as corporate divestitures with revenues from $25 million to $250 million and EBITDAs from $5 million to $30 million. The firm has $850 million in capital under management. ICV Partners was founded in 1998 and has offices in New York and Atlanta (www.icvpartners.com).
Marshall Retail Group is led by Chief Executive Officer Michael Wilkins, who will continue to lead the business going forward. “Brentwood is an important strategic partner that truly understands our business. We are eager to call on their expertise in retail and consumer brands as we continue our expansion into new channels,” said Mr. Wilkins. “At Marshall Retail Group, we’ve always focused on supporting and developing our people, enabling us to provide a high-quality experience for our customers. As we celebrate our 60th anniversary this coming year, we are pleased to have found a partner that shares our passion for team building and supports our continued growth.”
Brentwood Associates is a consumer-focused private equity investment firm with over $850 million of capital under management. Sectors of interest include branded consumer products; consumer and business services; direct marketing, including direct mail and e-commerce; education; health and wellness; restaurants; and specialty retail. The firm was founded in 1972 and is based in Los Angeles (www.brentwood.com).
“Marshall Retail Group has assembled a truly best-in-class management team who have generated growth and created a corporate culture that ensures future success. We look forward to working closely with Michael Wilkins and his leadership team to build on their impressive track record,” said Steve Moore, partner at Brentwood Associates.
Golub Capital was the lead arranger on the debt financing supporting the acquisition (for more information see our article “Brentwood Selects Golub to Finance Buy of Marshall Retail Group”.
Marshall Retail Group was advised by North Point Advisors and Nomura Securities, and its legal counsel was Kirkland & Ellis. Brentwood was represented by Greenburg Traurig in conjunction with the transaction and Latham & Watkins on the debt financing.
© 2014 PEPD • Private Equity’s Leading News Magazine • 8-27-14
