ACON Investments has acquired Funko from Fundamental Capital which acquired the company in June 2013.
Funko designs, imports and markets a portfolio of collectible products under licensing agreements with most of the leading creators and marketers of pop culture today. Funko deploys these licenses across several product platforms including vinyl figures, bobble-heads and plush characters. The company’s products are sold through multiple retail outlets including specialty stores, mass-market retailers, e-commerce, international and direct-to-consumer. Funko was founded in 1998 and is headquartered in Everett, WA (www.funko.com).
Under ACON ownership, Funko will continue to be led by CEO Brian Mariotti and other members of the existing senior management team, who will all be meaningful equity owners alongside ACON. Fundamental Capital will continue as a member of the board of directors and have a minority equity interest in the business.
“We are excited to be partnering with Brian and the entire Funko team,” said Ken Brotman, Founding Partner of ACON. “Funko has established itself as a fore-runner in the pop culture space and we look forward to building value in a business that is very well positioned for continued growth.”
“The growth Funko experienced following our partnership with Fundamental Capital has been spectacular,” said Mr. Mariotti. “Now we’re ready to take Funko to the next level and I look forward to partnering with ACON and benefiting from their experience to help us get there. As Funko continues to be a category disrupter in the pop culture and entertainment space, ACON’s expertise will be a welcome asset.”
ACON invests from $20 million to $150 million of equity capital in middle-market companies. The firm pursues a theme-based investment strategy by focusing on industries and businesses at key inflection points in their development and pursues these opportunities in partnership with established management teams. The firm was founded in 1996 and has offices in Washington, DC (headquarters); Los Angeles; Mexico City; Sao Paulo; and Bogota (www.aconinvestments.com).
Equity financing for the transaction will come from ACON’s third US domestic buyout fund, ACON Equity Partners III, LP. Debt financing for the acquisition is being provided by PNC Bank (www.pnc.com) and Cerberus Business Finance (www.cerberuscapital.com). Harris Williams & Co. (www.harriswilliams.com) was the exclusive financial adviser to Funko.
Fundamental Capital invests in small to mid-sized growth companies operating in the consumer products and services sectors that have revenues between $5 million and $50 million and EBITDA of at least $2 million. The firm was founded in 2004 and is based in San Francisco (www.fundamentalcapital.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 11-3-15
