Transom Capital Group has acquired the assets of A.T. Cross Company, a manufacturer of fine writing instruments, journals, stationery products, desk accessories and reading glasses, from Clarion Capital Partners.
In July 2013, Clarion acquired the assets of A.T. Cross for $60 million and in August 2014 it completed the add-on acquisition of Sheaffer, the fine writing instrument business of BIC for $15 million.
A.T. Cross, founded in 1846, is the largest and oldest manufacturer of fine writing instruments in the United States. Cross has been the official supplier of pens to the White House since the 1970s and the company’s pens are used to sign legislation and are given out as souvenirs to those who attend the bill signings. Cross markets and sells its products under the Cross and Sheaffer brands and all of the company’s manufacturing is conducted in China apart from its 18k and 21k gold writing instruments and the presidential writing instruments which are manufactured at the company’s Warwick, RI facility. Cross is headquartered in Providence, RI and has subsidiaries in China, Hong Kong, Taiwan, Japan, the United Kingdom and Mexico. (www.cross.com).
“The Cross transaction fits well with the investment strategy of Transom Capital and will allow us to partner with management in executing our value creation process,” said Russ Roenick, Managing Partner of Transom Capital. “The iconic Cross and Sheaffer brands have tremendous history and recognition in the US and globally, and are positioned well with specialty distributors, mass retailers, and e-commerce players, bringing with them an outstanding legacy of fine writing products that have been passed down through generations. We look forward to growing these two exceptional brands around the world.”
Transom Capital Group invests in buyouts and turnarounds of companies with EBITDAs from $0 (turnaround situations) to $20 million. Sectors of interest include consumer products, media & entertainment, and industrial. Transom held a final closing of Transom Capital Fund II LP with $133 million of limited partner commitments in June 2016. The new fund was oversubscribed and closed above target. Transom is headquartered in Los Angeles with an additional office in Seattle (www.transomcapital.com).
Clarion Capital Partners is a middle market private equity firm that invests from $15 million to $50 million in companies that have EBITDAs greater than $10 million. Sectors of interest include: business services; healthcare services; specialty financial services; consumer products; specialty retail; and media & entertainment. Clarion is based in New York (www.clarion-capital.com).
“This transaction represents an inflection point in our strategy to grow the Cross and Sheaffer brands,” said Cross CEO Robert Baird. “Our brand and product strategies are greatly enhanced going forward with access to growth capital. Transom is an exciting partner as they have experience in branded consumer products and a great track record of growing premium brands. They share a commitment to our core values of product quality and customer focus, and we are looking forward to working together to bring Cross and Sheaffer to the next level.”
© 2017 Private Equity Professional | November 20, 2017
