AEA Investors has signed an agreement to acquire a majority interest in 1-800 Contacts from Thomas H. Lee Partners (THL) which acquired the company in January 2014 from medical insurer Wellpoint, now known as Anthem. THL will remain a significant shareholder in the company. Anthem, an operator of Blue Cross and Blue Shield plans, bought 1-800 Contacts from Fenway Partners in June 2012 for about $900 million.
1-800 Contacts is the largest retailer of contact lenses in the United States delivering more than 200,000 contact lenses every day. Through its website (www.1800contacts.com), an easy-to-remember telephone number, and its mobile app, the company has served almost 11 million customers. The company also provides contact lens sourcing and fulfillment services to brick-and-mortar retailers. 1-800 Contacts was founded in 1995 and is headquartered in the Salt Lake suburb of Draper, UT.
AEA makes equity and debt investments in middle market companies that operate in the following sectors: retail and consumer products, services, specialty chemicals, and value-added industrial products. The firm manages approximately $9 billion of capital. AEA was founded in 1968 and is headquartered in New York (www.aeainvestors.com).
“We welcome AEA’s new investment alongside THL as a strong reflection of the company’s success in growing its business and an indication of how well 1-800 Contacts is positioned in the marketplace,” said Brian Bethers, CEO of 1-800 Contacts.
Thomas H. Lee Partners, founded in 1974, is one of the oldest private equity investment firms in the United States. Industries of interest include business and information services; consumer products and retail; financial services; health care; industrial; and media & communications. Since its founding, Thomas H. Lee Partners has raised approximately $20 billion of equity capital and invested in more than 130 businesses with an aggregate purchase price of more than $150 billion. The firm is based in Boston (www.thl.com).
Credit Suisse, Barclays, and Goldman Sachs are providing debt financing to support the transaction. AEA was advised by Credit Suisse and Barclays. THL and 1-800 Contacts were advised by CapM Advisors (www.cap-m.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 12-18-15