Cherry Tree & Associates | Notable M&A Transactions, April 2024
Justin Krabben
Director Investment Banking | Helping Business Owners Maximize Value | Industrial, Consumer, IT-Services, Technology
Cherry Tree & Associates | Notable M&A Transactions, April 2024
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Delight Restaurant Group Acquires 65 Wendy’s Restaurants
Delight Restaurant Group has acquired 65 Wendy's restaurants across Pennsylvania, Ohio, and West Virginia from Primary Aim, making it one of the largest franchisees in the Wendy's System. This acquisition brings Delight Restaurant Group's total owned and operated restaurants to 226, with $500 million in sales and 7,000 employees across eight states. The group plans to continue expanding through acquisitions and new unit development.
Riddell Secures Investment from BC Partners Credit
BC Partners Credit and Riddell have announced a strategic partnership to elevate Riddell's standing in football. Renowned for its premier football equipment and exclusive NFL partnership, Riddell will receive a $400 million investment from BC Partners, fueling its drive for innovation and expansion. This investment reaffirms Riddell's commitment to advancing research, product development, and strategic collaborations.
Dude Perfect Receives Strategic Investment from Private Equity Firm Highmount Capital
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Dude Perfect, the popular YouTube sports, comedy group, and apparel distributor secured over $100 million in funding from Highmount Capital to fuel its expansion beyond YouTube and into a larger media company. This marks the group's first external fundraising, with previous profits reinvested into its growth. With revenue expected to surpass $50 million this year, Dude Perfect plans to build its management team, expand its workforce, and explore global opportunities, including international tours and events.
Leading Outdoor Brands Company Kent Outdoors Receives Financing
Kent Outdoors, a multifaceted platform encompassing a wide range of outdoor brands and products, including personal flotation devices, wakeboards, water skis, towable tubes, snowboards, and more, has secured a $100 million credit facility from Eclipse Business Capital, alongside investments from Goldman Sachs and Comvest Partners. The investment will fuel Kent's growth strategy, facilitate operational enhancements, recruit new leadership, and product innovation. By prioritizing core business lines and divesting its bike business, Kent demonstrates its steadfast dedication to achieving sustained success in the dynamic outdoor sports market.
Leading Sandwich Company Subway Acquired by Private Equity Firm Roark Capital
Subway has entered into an agreement to be acquired by Roark Capital, marking a significant milestone in its transformation journey. With Roark's expertise in restaurant and franchise business models, Subway aims to leverage its global presence and brand strength for continued growth. The acquisition follows Subway's 10th consecutive quarter of positive same-store sales, and the company plans to focus on sales growth, menu innovation, restaurant modernization, guest experience enhancements, and international expansion under Roark's ownership.
FullBeauty Brands Acquires Online Fashion Company Dia & Co.
FullBeauty Brands, known for its focus on inclusive sizing, has acquired Dia & Co., a leading online marketplace for size-inclusive fashion. This marks FullBeauty's third acquisition in less than a year, following CUUP and ELOQUII. Dia's marketplace will integrate into FullBeauty's digital mall, offering a vast array of size-inclusive brands and styles. The acquisition aims to strengthen FullBeauty's position in the size-inclusive fashion market, which is experiencing rapid growth.?
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Skincare Products Maker Cellese Acquired by ARCHIMED
Cellese, a developer of innovative topical dermo cosmetics under the AnteAGE brand, has been acquired by ARCHIMED, a private equity healthcare specialist. California-based, Cellese specializes in skin rejuvenation products utilizing advanced technology. With significant revenue growth and sales in 45 countries increasing by 70% annually since 2020, Cellese's CEO, Ian Sanderson, partnered with ARCHIMED for their market understanding and commitment to the company’s vision. Sanderson and his family will retain a minority stake in the company.
Leading E-retailor Lax.com Acquires Universal Lacrosse
Lax.com, the premier lacrosse e-retailer and team dealer, has acquired Universal Lacrosse, solidifying its market leadership. The transaction positions Lax.com as the foremost e-commerce and team dealer focused solely on lacrosse, alongside acquiring Universal's 10 retail outlets. The integration is aimed at elevating customer service and capitalizing on synergies, maintaining distinct e-commerce platforms while expanding Lax.com's physical presence. The acquisition marks Lax.com's entry into brick-and-mortar retail, leveraging Universal's established network to enhance its portfolio.
The Simply Good Foods Company Acquires Ready to Drink Brand Only What You Need
The Simply Good Foods Company is acquiring Only What You Need (OWYN) for $280 million, enhancing its portfolio with the fastest-growing plant-based ready-to-drink protein shake brand. This acquisition strengthens Simply Good Foods' presence in the nutritional snacking category and expands its reach into the ready to drink shake segment. OWYN's strong sales growth, blue-chip customer relationships, and profitable e-commerce business are key factors driving the strategic value of the acquisition.
Mented Cosmetics Acquired by Private Equity Firm West Lane Capital Partners
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Mented Cosmetics, a leading cosmetic line focusing on products for women of color, has been acquired by West Lane Capital Partners, a California-based private equity firm. Founded by KJ Miller, Mented is known for its clean, vegan, and cruelty-free products. The acquisition aims to leverage West Lane's industry relationships and expertise to support Mented's distribution and product innovation, further enhancing its position in the beauty market.
Wormtown Brewery Acquired by Jack’s Abby Craft Lagers
The Hendler brothers, owners of Jack's Abby Craft Lagers, are acquiring Worcester-based brewery, Wormtown Brewery, cementing their position as one of the nation's top ten family-owned craft breweries. Under the new entity, Hendler Family Brewing Company, they will operate both Jack's Abby and Wormtown brands, along with Jack's Beverage Co. The acquisition expands production to 110,000 barrels annually, making Jack's Abby the largest craft brewery in Massachusetts.
Cosmetic Brand KIKO Milano Acquired by Private Equity Firm L Catterton
KIKO Milano, one of the largest privately-owned color cosmetics brands globally, is set to be acquired by L Catterton, a consumer-focused investment firm who will acquire a majority stake from the founding Percassi Family. Founded in 1997 in Bergamo, Italy, KIKO has cultivated a loyal following with its diverse portfolio of prestige-quality products at accessible prices. With an extensive retail presence of over 1,100 stores across 66 countries and strong e-commerce operations, KIKO recorded approximately $863 million in net revenue in 2023. This partnership aims to leverage L Catterton's expertise to further propel KIKO's global expansion and brand growth under the continued leadership of CEO Simone Dominici.
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CHERRY TREE CONSUMER 250 INDEX PERFORMANCE
CHERRY TREE CONSUMER 250 INDEX METRICS BY SUB-SECTOR
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For a confidential discussion about your company's strategic alternatives for exiting, merging, acquiring, or obtaining venture / growth financing, and how trends in the consumer sector affect your prospects, please contact Justin Krabben.
Prepared by:
Justin Krabben, Vice President
Phone: 952.253.6036