Summit Park has acquired Ledge Lounger, a provider of in-pool furniture and accessories. Co-investing in this transaction alongside Summit Park is Digital Fuel Capital (“Digital Fuel”) and senior members of the Ledge Lounger management team.
Ledge was founded in 2011 by CEO Christopher Anderson and, according to Ledge, the company created the in-pool furniture category with the introduction of its Signature Chaise product. Since founding, Ledge has expanded its product line across the pool and backyard markets and today sells patio furnishings, umbrellas, cabanas and outdoor games.
Ledge uses an omnichannel go-to-market strategy including both direct-to-consumer (D2C) and through the trade, retail and hospitality (B2B) channels.
“Our partnership with Summit Park and Digital Fuel will allow us to continue to excel at creating stylish, functional and comfortable products that create meaningful moments for families in their own backyard and at resorts around the world,” said Mr. Anderson. “We are thrilled about the next chapter of growth and investment. There’s no doubt that the Summit Park and Digital Fuel teams bring significant consumer, home goods and e-commerce experience, which will help us excel and capitalize on the opportunity at hand. Both Summit Park and Digital Fuel understand our culture, product and vision, as well as the partnership we were looking for as a founder-owned business.”
“We are excited to partner with Chris, COO Dylan Schrader, and other members of the Ledge team to build upon the impressive growth they have achieved thus far,” said Andrew Gilbert, a principal at Summit Park. “We believe that Ledge is uniquely positioned as the leading provider of in-pool furniture through the D2C and B2B channels, and we share the company’s vision of growing through continuous product innovation to meet the needs of our customers.”
The buy of Ledge is Summit Park’s eighth investment for its current fund, Summit Park III LP, which closed in August 2018 with $245 million of capital.
Charlotte-headquartered Summit Park invests in lower middle-market companies that have operations primarily based in the Eastern half of the United States and have revenues between $20 million and $150 million, and EBITDA between $4 million and $15 million. Sectors of interest include business and consumer services, light manufacturing, and value-added distribution.
“We believe that Ledge has significant opportunity to expand its digital marketing activities, and we look forward to working with the company and Summit Park to enhance that capability and capitalize on their leading market position, differentiated products and significant runway in the outdoor consumer products category,” said Carson Biederman, the founder of Digital Fuel.
Digital Fuel invests in B2B and B2C e-commerce companies that have positive EBITDA of up to $50 million. The firm was founded by Mr. Biederman in 2012 and is headquartered near Boston in Newton, Massachusetts.
PennantPark and Stellus Capital provided the debt financing to back the buy of Ledge by Summit Park and Digital Fuel.
Jefferies was the financial advisor to Ledge on this transaction.
© 2021 Private Equity Professional | November 11, 2021