The Riverside Company has reached an agreement to sell Baby Jogger Holdings to Newell Rubbermaid for approximately $210 million. Baby Jogger will become part of the Baby & Parenting segment of Newell Rubbermaid joining the company’s Graco and Aprica businesses.
Baby Jogger is a designer and marketer of branded infant and juvenile products focused on premium and activity strollers and related accessories. The company is expected to have approximately $90 million of net sales in 2014. Baby Jogger was founded in 1984 and is headquartered in Richmond, VA (www.babyjogger.com).
Riverside invested in Baby Jogger in 2012 and partnered with CEO Mark Zehfuss and the management team to further expand the brand’s global reach. That work started with the carve-out of Baby Jogger from its parent company, which required building standalone capabilities and adding resources in sales, marketing, e-commerce, finance and IT. Riverside also added board members and operating partners that had experience in infant and juvenile products, consumer products and branding.
Riverside completed one add-on acquisition for Baby Jogger during its ownership with the October 2013 buy of NJoy, a Barcelona-based designer, developer and marketer of infant and juvenile strollers. NJoy is best known for its reversible umbrella stroller which allows the child to face forwards or face the parent.
“During a relatively short investment period, Riverside and management were able to meet all of our goals for Baby Jogger,” said Riverside Partner Karen Pajarillo. “It is extremely rewarding to have had the chance to work with such a passionate team and help them execute on their global strategy for the company. Today, Baby Jogger products reach active parents in more than 70 countries worldwide.”
Working with Ms. Pajarillo on the transaction for Riverside were Principal Meranee Phing, Vice President Drew Flanigan, Associate Connor Danielowski, Operating Partner Michael Thompson, Operating Partner Michael Skelton and Operating Partner Brian Bunker.
Newell Rubbermaid (NYSE:NWL) is a marketer of consumer and commercial products with 2013 sales of $5.7 billion and a portfolio of well-known brands including Rubbermaid food storage, home organization and refuse container products; Sharpie markers; Paper Mate, Parker and Waterman pens; Aprica and Graco children’s products; Calphalon cookware and kitchen electrics; Irwin, Lenox and Hilmor professional tools; Levolor window décor; and Goody hair care accessories. The company is headquartered in Atlanta (www.newellrubbermaid.com).
“Baby Jogger has a great track record of growth and innovation, and their City Mini, City Select and other sub-brands in the premium stroller category are perfect complements to our Graco stroller business,” said Newell Rubbermaid President and CEO Michael Polk.
The acquisition of Baby Jogger will be financed by Newell Rubbermaid through a combination of organic cash flow and available borrowings and is expected to close by the end of the fourth quarter of 2014.
The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $250 million (€200 million in Europe). Since its founding in 1988, Riverside has invested in more than 360 transactions. The firm’s international portfolio includes more than 75 companies. Riverside is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).
Jones Day and KPMG advised Riverside on the transaction and Robert W. Baird & Co. acted as financial advisor to Newell Rubbermaid.
© 2014 PEPD • Private Equity’s Leading News Magazine • 12-2-14
