Gen Cap America has acquired The Bargain Barn in partnership with the company’s management team.
Bargain Barn, which operates as United Grocery Outlet and GO Grocery Outlet, specializes in liquidating closeouts, factory seconds, irregulars, and overstocked products. The company is one of the largest close-out grocery outlets in the eastern United States and operates 37 retail locations across Tennessee, North Carolina, Georgia, Kentucky, and Alabama.
Bargain Barn, with approximately 900 employees, was founded in 1974 and is based 180 miles southeast of Nashville in Athens, TN (www.myugo.com).
The Bargain Barn management team, led by Gary Buchanan, Don Whitted and Lisa Bryson, will stay on to run the daily operations of the business under Gen Cap America ownership. “We are extremely excited at the opportunity to partner with the top-notch management team at Bargain Barn,” said Gen Cap America Vice President Andrew Ginsberg. “We believe the company has a promising future ahead as they build on their long track record of providing value to customers and solutions to manufacturers.”
Gen Cap America invests in companies with revenues between $5 million and $100 million that are active in the manufacturing, distribution or service sectors. The firm is currently investing through Southwest Fund VII, a $250 million fund which had a final close at its hard cap in January 2017. Gen Cap was founded in 1985 and is based in Nashville (www.gencapamerica.com).
“Bargain Barn’s strong management team and long history of success made the company an excellent fit with Gen Cap America’s investment philosophy and we look forward to supporting the company in its next phase of growth,” said Barney Byrd, President of Gen Cap America.
The buy of Bargain Barn is the fourth acquisition completed by Gen Cap’s Southwest Fund VII within the past year. In November 2016 Gen Cap acquired Pyramyd Air, a Solon, OH-based distributor of air guns, airsoft guns and BB guns, as well as ammunition and related parts and accessories (www.pyramydair.com); in January 2017, Gen Cap acquired Gared, a Noblesville, IN-based manufacturer and marketer of athletic equipment to schools and other institutions. Products include equipment for basketball, volleyball, tennis, soccer, handball, field hockey, lacrosse, baseball and football (www.garedsports.com); and in July 2017 Gen Cap acquired Custom Plastic Specialties, an Erie, PA-based maker of promotional products including water bottles, stadium cups and steins, hand fans, tote bags, desk accessories, and other household and personal items that are sold exclusively to promotional products distributors (www.keystoneline.com).
© 2017 Private Equity Professional | November 27, 2017
