Saunders Karp & Megrue completes recapitalisation of Bob's Discount Furniture
31st January 2005
Apax Saunders Karp & Megrue, in partnership with the existing management team, announced today the completion of the recapitalisation of Bob's Discount FurniSaunders Karp & Megrue, in partnership with the existing management team, announced today the completion of the recapitalisation of Bob's Discount Furniture, a leading New England based retailer of home furnishings at everyday low prices.
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
