Blue Point Capital Partners has acquired OrthoLite, a supplier of insoles and related shoe components. This acquisition is the first platform investment for Blue Point III, the firm’s third middle-market buyout fund.
OrthoLite is a supplier of open cell foam insoles found in more than 140 million athletic, casual, dress, work and outdoor shoes each year. Customers include ASICS, Carhartt, New Balance, Merrell, Nike, Puma, Vans and Timberland. Almost half of the company’s customers co-brand with the OrthoLite name on their products, packaging or retail displays. OrthoLite was founded in 1997 and is headquartered in Amherst, MA with manufacturing operations located in Asia (www.ortholite.com).
“OrthoLite fits extremely well with Blue Point’s investment strategy, and we see several attractive opportunities to assist management in adding value,” said Juli Marley, a partner with Blue Point. “Given the importance of Asia to OrthoLite’s business, we are particularly well suited to partner with management. We feel fortunate to have invested with a talented team and look forward to working together as we invest in and support the company’s growth efforts.”
Blue Point Capital Partners is a lower-middle-market private equity firm that invests in manufacturing, distribution and service businesses generating $20 million to $200 million in revenue. The firm has over $800 million in committed capital and has offices in Charlotte, Cleveland, Seattle, and Shanghai (www.bluepointcapital.com).
“We have great respect for the OrthoLite brand and the business that management and its employees have built. The Company’s success is a testament to the strength of their team, high-quality standards and continuous innovations,” said Jeff Robich, a senior associate with Blue Point.
“Our mission is to provide high-quality, comfortable products to our customers. The industry resources, strategic approach and unique Asian capabilities that Blue Point brings to our partnership will provide a clear advantage in our efforts to diversify the company’s product offerings and expand into new markets. They are the perfect partner for us,” said Glenn Barrett, chairman and chief executive officer of OrthoLite.
BB&T Capital Markets served as the exclusive financial advisor to OrthoLite on this transaction and represents BB&T Capital Markets’ fifth branded consumer products transaction in the last 12 months.
“Glenn Barrett (Chairman and CEO), Pam Gelsomini (President), John Barrett (Asia General Manager) and their global leadership team have done an exceptional job in developing a world-class brand through ongoing product innovation and unparalleled customer service,” said Rex Green, Managing Director and Head of BB&T Capital Markets’ Retail and Consumer group. “OrthoLite’s track record of growth is a testament to the company’s extraordinary value proposition to many of the world’s leading footwear brands.”
BB&T Capital Markets provides capital and advisory services including research, sales and trading, equity and debt underwriting, M&A advisory and corporate banking. BB&T is one of the largest financial services holding companies in the US with $182.7 billion in assets. BB&T is based in Winston-Salem, NC (www.bbtcapitalmarkets.com).
“We are very proud to have worked with the OrthoLite team on this transaction,” added Joe Sparacino, a Vice President in BB&T Capital Markets’ Boston office. “We are excited to see the company begin its next phase of growth in partnership with Blue Point.”
© 2014 PEPD • Private Equity’s Leading News Magazine • 4-23-14
