Savers, Inc., a privately-held thrift store chain, today announced that definitive agreements have been executed with Leonard Green & Partners and TPG to recapitalize the company in partnership with Savers’ Chairman Thomas Ellison and the management team. The company’s recapitalization follows a successful six-year partnership with investment firm Freeman Spogli & Co.
Thomas Ellison, son of the company’s founder and a 35-year veteran of Savers, will have an equal ownership position to Leonard Green & Partners and TPG in the company and will continue in his role as Chairman. Ken Alterman will continue to lead the organization as President and CEO.
“Leonard Green & Partners and TPG are among the most experienced retail investors in the industry with strong portfolio companies who have demonstrated excellent results,” said Mr. Alterman. “We are pleased to have chosen like-minded partners who can continue to build on Savers’ history of success in supporting local communities and providing an exciting and value-driven shopping experience for our customers.”
Savers is thrift retailer offering clothing and accessories for men, women and children and household goods under the Savers, Value Village, Village des Valeurs, Unique Thrift Store and Valu Thrift Store brands. Annual revenues are approximately $1 billion. Through its business model of purchasing, reselling and recycling secondhand merchandise, the Savers family of thrift stores benefits more than 140 non-profit organizations, gives local consumers a smart way to shop and saves more than 600 million pounds of quality used goods from landfills each year. Savers has paid more than $1.4 billion to its non-profit partners over the last 10 years, turning otherwise unused items into sustainable funding that supports vital community programs and services. Founded in 1954, Savers operates nearly 290 locations and has more than 17,000 employees across the United States, Canada and Australia (www.savers.com).
“Savers is a leader in the resale industry with strong brand equity, a proven business model and significant potential for global expansion,” said John Danhakl, Managing Partner of Leonard Green & Partners. “We’re excited to partner with Savers’ talented management team and look forward to supporting the next phase of the company’s growth and profitability.”
Moelis & Company and Barclays acted as financial advisors to Savers and Bingham McCutchen served as its legal counsel through the process. Savers also engaged Goldman Sachs Lending Partners, Barclays Bank, Credit Suisse Securities, and Deutsche Bank Securities to act as the joint bookrunners and joint lead arrangers of the senior secured credit facilities.
Leonard Green & Partners’ philosophy is to invest in middle-market companies with market-leading franchises and defensible competitive positions, attractive growth prospects and proven management teams. The firm’s investments are in the form of traditional buyouts, going-private transactions, recapitalizations, growth capital investments, corporate carve-outs and selective public equity and debt positions. Sectors of interest include retail, distribution, healthcare, aerospace/defense and consumer/business services. Leonard Green & Partners was established in 1989 and manages approximately $15 billion of equity capital. The firm is located in Los Angeles, CA (www.leonardgreen.com).
TPG Capital is the global buyout group of TPG, a private investment firm founded in 1992 with approximately $51 billion of assets under management. Sectors of interest include industrials, retail, consumer, financial services, travel and entertainment, technology, media and communications, and healthcare. TPG makes investments throughout North America, Europe, Asia and Australia. The firm has offices in Fort Worth, San Francisco, Beijing, Chongqing, Hong Kong, Houston, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, Paris, Sao Paulo, Shanghai, Singapore and Tokyo (www.tpg.com).