Webster Capital has partnered with the management team of RIO Brands to acquire the company from Philadelphia-based Guardian Capital Partners. Co-investing in the equity alongside Webster Capital and management is Morgan Stanley Alternative Investment Partners. Guardian Capital Partners first invested in RIO Brands in August 2011.
RIO Brands is a supplier of outdoor furniture and accessories that are used in beach, backyard, patio, parks and other outdoor venues. The company sells patented products and other trademarked and licensed brand names through the consumer retail and e-commerce channels. RIO Brands was founded in 1947 and, according to the company, it is the oldest continually operating company in the outdoor furniture industry. RIO Brands is headquartered in the Philadelphia suburb of Conshohocken, PA (www.riobrands.com).
“We are excited to be investing in RIO given their strong position in the market and attractive license partnerships with both Tommy Bahama and Margaritaville,” said Donald Steiner, Managing Partner at Webster Capital. “Outdoor living is becoming an increasing part of everyday lifestyles. RIO plans to utilize its design and sourcing expertise to increase its share of the growing outdoor furniture market.”
Webster Capital invests in branded consumer, business- to-business, and healthcare services companies with revenues of $20 million to $100 million and EBITDAs from $2 million to $15 million. Transaction values typically range from $40 million to $100 million. The firm was founded in 2003 and is based in Waltham, MA (www.webstercapital.com).
“The future is bright,” said Ira Cohen, CEO of RIO Brands. “Webster Capital brings a wealth of experience selling lifestyle brands into the consumer marketplace, our sweet spot. The company is focused on the right categories at the right time, with clear positive demographic trends. We foresee a strong partnership leading to expansion of our market leadership position.”
Webster’s co-investor on this transaction, Morgan Stanley Alternative Investment Partners, was founded in 2000 and is headquartered in New York (www.morganstanleyaip.com).
Guardian Capital Partners, the seller of RIO Brands, makes control investments in lower middle market companies located primarily in the US that have annual revenues between $20 million and $100 million and EBITDAs between $3 million and $9 million. Sectors of interest include consumer products, niche manufacturing and specialty business services. The firm is headquartered in the Philadelphia suburb of Wayne, PA (www.Guardiancp.com).
Houlihan Lokey was the exclusive financial adviser to RIO Brands on this transaction.
© 2015 PEPD • Private Equity’s Leading News Magazine • 4-10-15
