HALO Dream, a portfolio company of Transom Capital Group, has acquired BreathableBaby, a designer and manufacturer of juvenile safe sleep products. Transom acquired HALO Dream (then Aden & Anais) in June 2023.
BreathableBaby manufactures and sells cribs and toddler beds; crib mattresses and pads; toddler sheets, pillowcases and pillows; infant bedding including sheets and mattress covers; mesh liners and teething covers; swaddles and changing pad covers. Many of the company’s products incorporate its patented non-padded Breathable™ Mesh Liner which, according to company, is an industry standard.
The Consumer Product Safety Commission has found that over the course of nearly twenty years non-padded mesh liners had zero fatal incidents on record while crib bumpers (outlawed by the 2022 Safe Sleep for Babies Act) were found to have 113 fatal incidents.
With the closing of the transaction, BreathableBaby will be integrated into HALO’s portfolio of premium juvenile products.
New York City-headquartered HALO Dream is a designer, developer, marketer and distributor of infant accessories and apparel including swaddles, blankets, wearable blankets, bassinets, and bibs. The company’s products go to market under the HALO and aden + anais brands, and are sold through the e-commerce, mass retail, international, hospital, government, and direct-to-consumer channels.
“The BreathableBaby brand is an industry leader with significant potential for growth,” said Walter Lehneis, the CEO of HALO. “Bringing the two companies together will unlock innovation grounded in deep consumer insight and executed across a broad range of channels globally.”
“Transom Capital will continue to bring additional resources, expertise and financial backing in support of building world class innovation, ecommerce and supply chain expertise to the HALO platform,” said Kevin Waddell, an operating partner at Transom. “BreathableBaby offers a highly complementary fit with HALO’s portfolio of safe sleep, bedding, and crib products and further reaffirms HALO’s commitment to providing parents with innovative solutions that prioritize safety.”
MidCap Financial, which backed Transom’s buy of Aden & Anais in June 2023, provided a senior secured credit facility to finance the acquisition of BreathableBaby. MidCap Financial, in alliance with its investment manager Apollo Capital Management, is a middle-market focused finance firm that provides debt instruments of $10 million to $750 million to companies across all industries.
Transom makes control investments in North America-based companies that have revenue up to $500 million, EBITDA up to $100 million and enterprise values up to $500 million. Sectors of interest include industrial, consumer, business services and technology. The firm has $900 million of assets under management and is headquartered near Los Angeles in El Segundo, California.
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