Bertram Capital has acquired Perennials and Sutherland from Acacia Partners which first invested in the company in December 2015.
Perennials and Sutherland is a designer and manufacturer of acrylic fabrics and rugs for indoor and outdoor use (such as gardens, pools, yachts and casual living areas), and high-end outdoor furniture. The company’s UV stable fabrics and rugs are designed to be resistant to stains, water, mold and mildew and are sold to a range of residential and commercial customers.The company’s furniture products are sold primarily through high-end showrooms targeting interior designers. Perennials and Sutherland has production facilities in Mexico and India and is headquartered in Dallas (www.perennialsandsutherland.com).
“Over the past two decades, Perennials and Sutherland has established itself as a clear leader in a high-growth and attractive market,” said Tim Heston, a partner at Bertram Capital. “The company’s compelling growth and market position reflect its superior product offering, differentiated design and manufacturing capabilities, as well as its entrenched relationships within the trade and retail channels.”
The buy of Perennials and Sutherland is Bertram’s eighth platform acquisition for its third fund which closed in February 2018 with $500 million of capital commitments.
“As a market leader in a niche sector that continues to benefit from favorable secular tailwinds, Perennials and Sutherland, in partnership with Bertram Capital, is well-positioned to enter its next phase of growth. Bertram is excited to partner with the Sutherlands to take Perennials and Sutherland to the next level of growth and market presence,” said Jeff Drazan, a managing partner of Bertram Capital. “I am also pleased that Perennials and Sutherland co-founders, Ann and David Sutherland, will remain actively involved in operations and retain significant ownership in the company.”
“The Bertram team differentiated itself in the sale process through its clear understanding of our brand, our products and the favorable adoption trends in our market,” said Ms. Sutherland. “We are truly excited to partner with Bertram to help us pursue our next phase of growth, further solidify our leading market position and strengthen our operations.”
Bertram invests in middle-market business services, consumer, industrial and manufacturing companies that have revenues from $25 million to $250 million and EBITDA of $5 million to $30 million. The firm is headquartered south of San Francisco in San Mateo, CA (www.bertramcapital.com).
Acacia Partners, the seller of Perennials and Sutherland, invests from $20 million to $100 million of equity in family-owned and/or owner-operated companies that have EBITDA of more than $5 million. Sectors of interest include IT and business services, consumer products and services, health care services, distribution, transportation and logistics, packaging, and manufacturing. Acacia Partners is headquartered in Austin, TX (www.acaciapartnersllc.com).
Twin Brook Capital Partners provided financing to support Bertram’s buy of Perennials and Sutherland. Chicago-based Twin Brook is the middle market direct lending arm of Angelo Gordon. The firm targets senior financing opportunities up to $400 million with hold sizes across the Twin Brook platform ranging from $25 million up to $150 million. The firm provides financing to support sponsor-led buyouts and recapitalizations of companies with $3 million to $50 million in EBITDA, with an emphasis on companies with $25 million of EBITDA and below.
© 2019 Private Equity Professional | February 12, 2019