lifestyle brand

Webster Capital Invests in Lifestyle Brands

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Webster Capital has acquired an equity interest in Lifestyle Brands, LLC, the apparel and consumer products division of Margaritaville Enterprises.

Lifestyle Brands is a licensee for all non-food and beverage consumer products of Margaritaville, a brand inspired by the lyrics and lifestyle of singer, songwriter and author, Jimmy Buffett. Lifestyle Brands designs and supplies women’s and men’s apparel and swimwear, and other consumer products, including home goods, outdoor furnishings, and recreational merchandise. The company’s products – marketed under Margaritaville, LandShark, St. Somewhere, License to Chill, and It’s Five o’Clock Somewhere – are available through multiple retail channels including specialty department stores in the US, as well as through Home Shopping Network, Frontgate and online at www.margaritavillestore.com.

“We are thrilled about this opportunity to partner with Margaritaville,” said Donald Steiner, a managing partner at Webster Capital “I have been a fan for many years and appreciate the enthusiastic and broad following for this beach lifestyle brand that appeals to consumers across many demographics. We love Margaritaville’s products and believe there is a huge opportunity to expand distribution and brand penetration.”

“We are excited to partner with Webster Capital, a firm with great expertise in the lifestyle apparel and consumer products business, which shares our focus on growth, quality and fun,” said John Cohlan, CEO of Margaritaville Enterprises.

Webster Capital invests in branded consumer, business-to-business, and healthcare services companies with EBITDAs from $3 million to $15 million and transaction values from $20 million to $100 million. At present, Webster has $600 million under management and is currently investing its third fund which closed in 2014 with $400 million in capital commitments.  The firm was founded in 2003 and is based in the Boston suburb of Waltham (www.webstercapital.com).

Margaritaville Enterprises operations include consumer products, restaurants, retail shops, hotels, resorts, and media. The Margaritaville brand, including all of Enterprises’ divisions, generates brand-wide sales of approximately $1.4 billion annually. Margaritaville Enterprises was founded in 1977 and is based in Orlando (www.margaritaville.com).

Ropes & Gray (www.ropesgray.com) was the legal advisor to Webster Capital.

© 2016 Private Equity Professional • 7-15-16

Brentwood Recaps Well-Performing Soft Surroundings

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Consumer focused Brentwood Associates has completed a dividend recapitalization of Soft Surroundings. The dividend recap was financed through an expansion of the company’s existing credit facility and Soft Surroundings also increased its debt capacity to finance its national retail store rollout. Brentwood first invested in Soft Surroundings in August 2012.

Soft Surroundings is a multi-channel marketer and lifestyle brand targeting active women. The company’s comfort, romance and relaxation products include clothing, jewelry, shoes, bedding, and beauty and fragrance products. Soft Surroundings reaches its customer through its print, digital and social media channels as well as a national footprint of 28 stores. The company was founded in 1999 by Robin Sheldon (President/CMO), Tom Wilcher (CEO) and Grant Williams (Vice Chairman) and is headquartered in St. Louis (www.softsurroundings.com).

The financing for the recapitalization was provided by CIT Bank; Zions First National Bank; KeyBank; Bank of America Merrill Lynch; and Banc of California. Soft Surroundings is in the midst of a nationwide store expansion strategy, and the new debt financing includes a facility to fund future store openings. The company opened 11 new stores in 2015 and has identified 15 locations for 2016.

“Exceptional earnings growth, and a strong partnership with our supportive lenders, has allowed the company to return a significant portion of the invested capital through a dividend recapitalization,” said Eric Reiter, a partner with Brentwood Associates.

“We are thrilled with Soft Surroundings’ outstanding operating results. The company’s continued success in retail as measured by both unit and same-store sales growth is a direct result of the hard work and dedication of the Soft Surroundings management team,” said Roger Goddu, a partner at Brentwood. “We could not be more enthusiastic about the company’s prospects.”

Brentwood Associates is a consumer-focused private equity investment firm with over $1.4 billion of capital under management. Sectors of interest include branded consumer products; consumer and business services; direct marketing, including direct mail and e-commerce; education; health and wellness; restaurants; and specialty retail. The firm was founded in 1972 and is based in Los Angeles (www.brentwood.com).

Earlier this month, Brentwood Associates acquired Boston Proper, a direct-to-consumer business from Chico’s FAS. Like Soft Surroundings, Boston Proper is a multi-channel specialty retailer of women’s high-end apparel and accessories that is available nationwide by direct mail catalog and online. The company was founded in 1992 and is headquartered in Boca Raton (www.bostonproper.com). Brentwood’s strategy is to build a direct-to-consumer lifestyle brand through Boston Proper’s print, digital and social channels.

© 2016 PEPD • Private Equity’s Leading News Magazine • 2-1-16