Fireman Capital Partners has sold its portfolio company Skip Hop, a designer and seller of baby and children’s products, to publicly-traded Carter’s for $140 million in cash plus additional payments based on performance. Fireman acquired a majority interest in Skip Hop in November 2013 for approximately $60 million.
Skip Hop designs and sells diaper bags, infant toys, nursery gear, bath, feeding and the ZOO line of toddler products. The company’s products are sold at over 5,000 locations in the US and Canada and in over 60 countries worldwide. Skip Hop was founded in 2003 by Ellen and Michael Diamant and is based in New York (www.skiphop.com).
“Fireman Capital’s track record in the consumer space and vision for our company was immensely helpful as we developed Skip Hop into the market leader it is today. We thank the firm for their support and look forward to further growth as part of the Carter’s team,” said Mr. Diamant.
“Skip Hop was a great investment for our firm, and we are thrilled to have been able to leverage our resources and operational expertise to help the company grow,” said Marla Sabo, Partner at Fireman Capital. “It has been a pleasure working with the entire Skip Hop organization and we are confident they have a bright future ahead under Carter’s leadership.”
Fireman Capital Partners invests from $50 million to $100 million of equity in consumer products companies with revenues between $25 million and $150 million and EBITDA from $20 million to $100 million. The firm was founded in 2008 by Chairman Paul Fireman, the former Chairman and CEO of Reebok International, and Managing Partner Dan Fireman and is based near Boston in Waltham, MA (www.firemancapital.com).
“Skip Hop is a dynamic, market leading company with unique and innovative products. We are proud to have partnered with Michael and Ellen Diamant in helping extend the company’s product portfolio, build their distribution network, expand internationally and further its online presence. We wish them continued success,” said Dan Fireman.
Harris Williams & Co. was the financial advisor to Skip Hop. The transaction was led by Managing Director Brent Spiller, and Associates Marshall Printy and Zach Ledwith of Harris Williams & Co.’s Consumer Group. “We are extremely happy to have represented Skip Hop on its sale to Carter’s,” said Mr. Spiller. “Skip Hop is one of the most exciting brands within the infant and juvenile category with a passionate consumer following. We are delighted to have paired Skip Hop with a long-term partner in Carter’s who shares Skip Hop’s passion for the brand and vision for the future. This transaction marks another important milestone in our firm’s extensive track record advising premier brands in the infant and juvenile sector.”
Carter’s (NYSE:CRI) is one of the largest branded marketers of apparel and related products exclusively for babies and young children. Company owned brands include Carter’s and OshKosh B’gosh. Carter’s products are sold in department stores, national chains and specialty retailers domestically and internationally and also through nearly 1,000 company-operated stores in the US and Canada and online. Carter’s was founded in 1865 by William Carter and is based in Atlanta (www.carters.com).
© 2017 Private Equity Professional | February 23, 2017
