Next Point Capital and Breakaway Capital Partners have acquired Art Brand Studios. Breakaway provided a $6 million senior secured credit facility and made an equity co-investment to finance the acquisition which was led by Next Point.
Art Brand Studios was acquired from Nanette Kinkade, the widow of artist Thomas Kinkade, a painter and mass marketer of popular realistic, bucolic, and idyllic subjects, who passed away in 2012. Art Brand Studios is the owner of the Thomas Kinkade Company which holds the exclusive license to sub-license and publish artwork created or inspired by the Mr. Kinkade. Additionally, through a license from the Walt Disney Company, Art Brand Studios publishes Thomas Kinkade-inspired, Disney-themed art. The company’s licensees include Hallmark Cards (greeting cards), Bradford Exchange (collectibles), AMU (calendars) and CEACO (puzzles).
“We are excited to have Breakaway Capital as our financing partner. Breakaway’s ability to be creative, flexible and close quickly was a tremendous benefit to us,” said Mark Mickelson, Managing Partner of Next Point Capital.
Next Point Capital makes senior, subordinated and uni-tranche loans and equity investments in companies that have revenues in excess of $25 million and EBITDA in excess of $3 million. The firm prefers to invest in companies that are headquartered in the Western United States. Next Point Capital is based in Los Angeles (www.nextpointcapital.com).
The Art Brand Studios transaction represents Breakaway’s first investment from its inaugural $50 million lower-middle market fund which closed last year. “We are thrilled to provide debt financing to and be an equity partner with Next Point,” said Warren Woo, Managing Partner of Breakaway Capital Partners. “This transaction is representative of Breakaway’s strategy to provide complete one-stop financing solutions for lower middle market companies, financial sponsors and independent sponsors.”
Breakaway provides senior debt, subordinated and mezzanine debt, unitranche structures, structured equity and common equity to companies with up to $5 million of EBITDA. The firm targets leveraged buyouts, acquisitions, recapitalizations, restructurings and growth capital for both sponsored and non-sponsored transactions. Breakaway Capital Partners was founded by Warren Woo and is based in Los Angeles (www.breakawaycap.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 1-20-15