Brentwood Associates has completed a dividend recapitalization of its portfolio company Sundance Holding Company.
Sundance is a multi-channel direct marketer and specialty retailer of apparel and accessories, jewelry and home furnishings. The company’s products are sold through its catalogs, website, an outlet store and retail stores located in Corte Madera, CA and Denver, CO. Sundance was founded by Robert Redford in 1989 and is headquartered in Salt Lake City (www.sundancecatalog.com).
Brentwood acquired Sundance in July 2012 through its fourth fund, Brentwood Associates Private Equity IV, LP. Since acquiring the company it has expanded its customer database, grew the apparel business through new product development, and expanded its e-commerce marketing efforts. “We are thrilled with Sundance’s outstanding operating results. Significant sales and earnings growth since acquisition have enabled the dividend recapitalization, while continuing to provide financial flexibility for our national retail expansion,” said Eric Reiter, a Partner at Brentwood.
Payment of the shareholder dividend was financed through an expansion of the company’s existing credit facility which is provided by OneWest Bank; Zions First National Bank; KeyBank; and Bank of America Merrill Lynch. The financing also includes an allocation to fund the company’s planned nationwide retail store expansion strategy.
Brentwood Associates is a consumer-focused private equity investment firm with over $1.4 billion 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).
The dividend recapitalization of Sundance caps an active twelve months for Brentwood. During this time, Brentwood has completed three new portfolio investments with the buys of Marshall Retail Group, Z Gallerie, and Excelligence Learning Corporation.
© 2015 PEPD • Private Equity’s Leading News Magazine • 7-23-15