Batteries Plus Bulbs, a multi-channel retailer of batteries, light bulbs and device repair services, has been acquired by Freeman Spogli & Co., the company’s management team, and other investors. The seller of Batteries Plus Bulbs was Roark Capital Group which acquired the company in November 2007 from its founding owner Ron Rezetko.
Batteries Plus Bulbs is a specialty retailer that operates a network of 630 franchise locations and 48 company-owned stores across 48 states. The company’s product offering includes over 34,000 system-wide SKUs that span 35 battery and 30 light bulb sub-segments. Batteries Plus Bulbs products are used in a variety of applications including automotive, marine, power sports, lawn and garden equipment, consumer electronics, security systems and other home applications. In 2012 the company changed its name to Batteries Plus Bulbs – from just Batteries Plus – to reflect the addition of light bulbs to its inventory of products. In July 2014 the company introduced a nationwide cell phone and tablet repair service. Batteries Plus Bulbs is led by CEO Russ Reynolds and COO Tom O’Hare. The company was founded in 1988 by Ron Rezetko, and is headquartered west of Milwaukee in Hartland, WI (www.batteriesplus.com).
“Batteries Plus Bulbs is uniquely positioned as the category specialist in its large and growing markets. In categories where purchases are typically need-based, time-sensitive and driven by convenience and service, the Company has successfully established customer loyalty through its unmatched product offering and knowledgeable staff,” said Benjamin Geiger, a Partner at Freeman Spogli. “Russ Reynolds, Tom O’Hare and the rest of the management team have done an outstanding job positioning Batteries Plus Bulbs as the leader in its categories, and we believe there is significant whitespace to further expand the company’s footprint.”
Freeman Spogli invests in middle market consumer and distribution companies. Since its founding in 1983, the firm has invested over $3.7 billion in 55 portfolio companies with an aggregate transaction value of approximately $22 billion. Freeman Spogli has offices in Los Angeles and New York (www.freemanspogli.com).
Golub Capital was the Administrative Agent, Lead Arranger and Joint Bookrunner on a $280 million debt facility to back Freeman Spogli’s buy of Batteries Plus Bulbs. Troy Oder, a managing director, led the transaction for Golub Capital (www.golubcapital.com).
Roark Capital Group , the seller of Batteries Plus Bulbs, invests in consumer and business services companies, with a focus on the franchise, food and restaurant, specialty retail, health and wellness, consumer and business services sectors. Roark’s current portfolio company brands include Anytime Fitness, Arby’s, Corner Bakery, Driven Brands, FOCUS Brands (the owner of Auntie Anne’s Pretzels, Carvel Ice Cream, Cinnabon, McAlister’s Deli, Moe’s Southwest Grill, and Schlotzsky’s), Hardee’s, Massage Envy, Miller’s Ale House, Orangetheory Fitness, Pet Supermarket, Pet Valu, Waxing the City, and Wingstop. The firm is based in Atlanta (www.roarkcapital.com).
Robert W. Baird & Co. (www.rwbaird.com) was the financial advisor to Batteries Plus Bulbs and Paul, Weiss, Rifkind, Wharton & Garrison (www.paulweiss.com) and DLA Piper (www.dlapiper.com) were the legal advisors to the company. Morgan, Lewis and Bockius (www.morganlewis.com) was the legal advisor to Freeman Spogli.
© 2016 Private Equity Professional • 7-12-16
