Sun Capital Partners has completed the sale of Hanna Andersson, a premium children’s apparel and lifestyle brand, to L Catterton.
Sun acquired Hanna Andersson in 2008 when it was spun out of the Kellwood Company as an independent entity. “We saw tremendous potential for Hanna Andersson to succeed as a standalone business, and our team worked with company management to devise and execute an operationally-focused strategy that transformed that potential into strong results,” said Marc Leder, Co-CEO of Sun Capital. The company has been generating double-digit annual revenue growth since 2010.
During the Sun Capital’s ownership, Hanna Andersson implemented cost savings initiatives, improved sourcing strategies, and made several other operational improvements. “Hanna Andersson is a great example of Sun’s expertise in prudently investing in and supporting accelerated growth,” said Jonathan Jackson, Vice President at Sun Capital. “We applied our past experience to ensure the company would have the operational resources, processes, and financial infrastructure required to achieve its growth strategy. Having this operational plan in place at the outset enabled Hanna Andersson to quickly begin execution and seize its market opportunity.”
Hanna Andersson manufactures clothing for babies, toddlers, kids, and women. Over 60% of the company’s products are made in environmentally friendly production facilities (OEKO-TEX certified) and many items are made with organic cotton. In 2014, the company expanded its product offerings to include home décor and bedding. In 2016, the company expanded its women’s collection to include maternity apparel. Hanna Andersson has an omni-channel sales platform including a heritage catalog business, e-commerce capabilities, and 55 retail stores and 11 outlet locations. The company was founded in 1983 and is headquartered in Portland, OR (www.hannaandersson.com).
L Catterton has stated that it will assist Hanna Andersson with rapidly expanding its retail store presence both domestically and internationally over the coming years. Adam Stone will continue to lead Hanna Andersson as President and Chief Executive Officer.
“We are thrilled to partner with L Catterton, whose knowledge of the consumer market, significant operational expertise and value-added approach will enable Hanna Andersson to enter our next phase of rapid growth and success,” said Mr. Stone. “L Catterton has a unique appreciation for our company’s deep emotional connection with customers, who are fiercely loyal to – and constant promoters of – the brand. We look forward to working with L Catterton and leveraging its distinctive global consumer platform to expand our retail footprint within and outside the United States.”
L Catterton invests from $10 million to $50 million of capital in consumer-focused companies growing at double or triple digit rates. Areas of specific interest include food and beverage, retail and restaurants, consumer products and services, consumer health, and media and marketing services. L Catterton has 120 investment and operating professionals in 18 offices. The firm was founded in 1989 and is headquartered in Greenwich, CT (www.lcatterton.com).
“We see an incredible opportunity in Hanna Andersson, a premium brand with international potential, which plays a dominant role in a large and highly fragmented children’s wear market, supported by favorable demographics,” said Nik Thukral, Co-Managing Partner of L Catterton’s Buyout Fund. “Having already achieved significant growth since 2010, Hanna Andersson is primed for even greater expansion as it continues to enhance its traditional product categories while adding new offerings and elevating the brand.”
Sun Capital invests in leveraged buyouts, equity, and debt in companies that can benefit from its in-house operating professionals and experience. Sun Capital has invested in and managed more than 330 companies worldwide with combined sales in excess of $45 billion since the firm’s inception in 1995. The firm has offices in Boca Raton, Los Angeles and New York, and affiliates in London, Frankfurt, Paris, Stockholm and Shenzhen (www.SunCapPart.com).
Harris Williams & Co. (www.harriswilliams.com) and Financo (www.financo.com) served as co-lead advisors to Hanna Andersson on the transaction. Kirkland & Ellis (www.kirkland.com) served as legal counsel to the company.
© 2016 Private Equity Professional • 8-3-16