Castanea Invests in Aurora Brands
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Castanea Invests in Aurora Brands

aurora brands f1Castanea Partners has made an investment in Aurora Brands, the owner of luxury home and lifestyle brands MacKenzie-Childs and Jay Strongwater.  Castanea Partners is partnering with the Aurora Brands management team, led by Lee Feldman and Howard Cohen. As partners in Twin Lakes Capital, they led the acquisition of MacKenzie-Childs in 2008 and Jay Strongwater in 2011.

MacKenzie-Childs is a brand of luxury home furnishings and personal accessories.  The brand has a multi-channel sales presence, including a direct-to-consumer business, wholesale distribution in luxury department stores and independent home retailers, and three branded retail stores. MacKenzie-Childs was founded in 1983 and is headquartered in Aurora, NY (www.mackenzie-childs.com).

Jay Strongwater is an internationally recognized luxury brand in home and personal accessories.  The brand is distributed in luxury department stores, independent retailers and through a direct-to-consumer business.  Jay Strongwater was founded in 1995 and headquartered in New York City (www.jaystrongwater.com).

steve berg nf1“We really look forward to working with Lee and Howard to support the continuing growth of MacKenzie-Childs and Jay Strongwater,” said Steve Berg, Partner at Castanea. “We feel that our operating and marketing experience will add value in the next stage of the company’s development.”

Castanea Partners invests from $15 million to $75 million in companies that operate in the consumer brands, marketing services, and information services sectors. Castanea participates in leveraged buyouts, growth and acquisition equity investments, and operationally challenging situations. The firm is currently investing from its third fund, a $500 million fund that targets companies with enterprise values up to $250 million. Castanea is headquartered west of Boston in Newton, MA (www.castaneapartners.com).

Ron FraschAs part of the transaction, Ron Frasch Operating Partner at Castanea, will be joining Aurora Brands’ board.  Mr. Frasch is an experienced luxury retail executive who most recently served as the President and Chief Merchandising Officer at Saks Fifth Avenue. He joined Castanea in February 2014.  “Aurora Brands has established itself as a leader in the luxury home segment and is well positioned to capitalize on future opportunities,” said Mr. Frasch, “I am excited to work with this impressive team to further develop the MacKenzie-Childs and Jay Strongwater brands.”

“We are excited to partner with Castanea, and believe their investment sets the stage for future growth. Castanea’s extensive operating experience building premium consumer brands was the distinguishing factor when it came to selecting a partner,” said Lee Feldman, CEO of Aurora Brands.

Financo, an investment bank based in New York (www.financo.com), served as the exclusive financial advisor to Aurora Brands.

© 2014 PEPD • Private Equity’s Leading News Magazine • 9-2-14

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