Bob’s Discount Furniture, a retailer of furniture and bedding and a portfolio company of Karp Reilly, has signed an agreement to sell a majority stake in the company to Bain Capital. The management team will continue to own a significant stake in the company. The transaction is expected to close during the first quarter of 2014.
Bob’s Discount Furniture, acquired by Karp Reilly in 2004, sells home furnishings, including living room furniture, bedroom furniture, dining room furniture, mattresses/foundations and other home accents through 47 stores located throughout the Northeast and Mid-Atlantic states. The company is headquartered in Manchester, CT with distribution centers in Taftville, CT and Perryman, MD. The company completes over 15,000 deliveries per week through 9 delivery hubs and is ranked as the 16th-largest US furniture chain. Bob’s Discount Furniture was founded in 1991 (www.mybobs.com).
“We are excited to partner with Ted English and the great management team at Bob’s Discount Furniture to support continued growth in this dynamic business,” said Tricia Patrick, a Principal at Bain Capital. “We believe the company’s quality furniture at deep value fills an important need in the market today, and along with the authenticity of the Bob’s brand, should drive sustainable growth for years to come. We look forward to supporting the management team in executing their plan to grow and offer more customers the opportunity to shop at Bob’s Discount Furniture.”
Financing for the transaction is being provided by RBC and UBS. BofA Merrill Lynch is serving as financial advisor, and Ropes & Gray is acting as legal counsel, to Bob’s Discount Furniture. Kirkland & Ellis is serving as legal counsel, and PwC is serving as accounting advisor, to Bain Capital.
Bain Capital manages several pools of capital, including private equity, venture capital, and public equity and leveraged debt assets. The firm has more than $70 billion in assets under management. Since its inception in 1984, Bain Capital has made private equity investments and add-on acquisitions in more than 450 companies in a variety of industries around the world. The firm has offices in Boston, New York, Chicago, London, Munich, Tokyo, Shanghai, Hong Kong and Mumbai (www.baincapital.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 1-6-14
