Saunders Karp & Megrue completes recapitalisation of Bob's Discount Furniture
31 January 2005
Saunders Karp & Megrue, in partnership with the existing
management team, announced today the completion of the
recapitalization of Bob's Discount Furniture, a leading New England
based retailer of home furnishings at everyday low prices.
Headquartered in Manchester, CT, Bob's Discount Furniture was
founded in 1991 by Mr. Gene Rosenberg and Mr. Bob Kaufman, the
current Chairman and President, respectively, who were joined soon
thereafter by Mr. Stan Adelstein and Mr. Joe Goodman, the current
Chief Executive Officer and Executive Vice President of Finance and
Operations, respectively. The company has since grown to 19
locations in Connecticut, Massachusetts, New Hampshire, and Maine
with total annual sales exceeding $250 million. Bob's Discount
Furniture has strong regional brand awareness and customer appeal
due to its unique shopping environment, commitment to customer
service, and everyday low prices.
The Private Company Recapitalization of Bob's Discount Furniture
allows the company's shareholders to achieve personal liquidity
while maintaining their responsibility for the day-to-day
operations of the business and retaining a significant ownership
position in the company. Mssrs. Rosenberg, Kaufman, Adelstein, and
Goodman will continue to serve Bob's Discount Furniture in their
existing roles. The terms of the transaction were not
disclosed.
"We are delighted with our newly formed partnership with Bob's
Discount Furniture," said SKM Partner, John Megrue. "Gene, Bob,
Stan, and Joe have built a differentiated retail concept and a
great management team. Bob's has demonstrated a consistent record
of impressive growth and financial performance. We look forward to
working with the company to continue their rapid expansion."
"We identified SKM as the ideal partner for Bob's Discount
Furniture due to their retail experience and focus on Private
Company Recapitalizations," stated Stan Adelstein. "We believe
their extensive experience with high growth, multi-unit retailers
will serve Bob's well during this next stage of our growth."
As part of the recapitalization, Dick Lesser has joined the
board of directors of Bob's Discount Furniture. Mr. Lesser serves
on the board of directors of TJX Companies, Inc., an off-price
apparel and home furnishings retailer whose concepts include TJ
Maxx, HomeGoods and Marshalls among others. He most recently served
as Senior Corporate Advisor to TJX and served in numerous other
operating roles during his tenure at TJX including Chief Operating
Officer. Mr. Lesser is also a director of Reebok International
Ltd., A.C. Moore Arts & Crafts, Inc., Dollar Tree Stores, Inc.,
and Organized Living, Inc. Citigroup Global Markets Inc. served as
exclusive financial advisor to Bob's Discount Furniture in
connection with the recapitalization.
About SKM
Saunders Karp & Megrue is a private equity firm engaged in the
acquisition and ownership of operating businesses. The firm manages
over $1.5 billion through three private equity funds. SKM aligns
itself with superior management teams in a diverse portfolio of
profitable companies. SKM emphasizes growth and value creation, not
financial engineering, which makes the firm an ideal partner for
management in executing long-term business strategies. Bob's
Discount Furniture represents SKM's 17th platform investment in the
retail industry. Some of SKM's other retail investments include
Dollar Tree, The Children's Place, Charlotte Russe Holding, and
Hibbett Sporting Goods. Headquartered in Stamford, Connecticut, SKM
is positioned to provide equity capital ranging from $5 to $200
million per investment to any region in the U.S. For more
information, please visit http://www.skmequity.com/
.
For further information:
John Megrue
262 Harbor Drive
4th Floor
Stamford, CT 06902
T: (203) 708-6618
jmegrue@skmequity.com
Sean Britain
262 Harbor Drive
4th Floor
Stamford, CT 06902
T: (203) 708-6636
sbritain@skmequity.com