Transactions

  • October 30, 2017 - Roberta Roller Rabbit has been sold to an investor group

    Avalon Net Worth has identified an investor group for the acquistion of Roberta Roller Rabbit... 

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  • March 31, 2017 - Atlantic Street Capital portfolio's company, Alex Apparel Group, Inc., have acquired Sally Lou Fashions

    Avalon Net Worth has identified a strategic target company for Atlantic Street Capital and its portfolio company, Alex Apparel Group, to aquire... 

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  • March 02, 2017 - ANW has advised on the sale of Jaclyn, Inc. (OTCMKTS:JCLY), to an affiliate of Golden Touch Imports, Inc.

    Jaclyn, Inc. (OTCMKTS:JCLY), a $175 million (revenues) multi-line fashion and accessory firm, has been sold to an affiliate of Golden Touch Imports, Inc. ... 

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  • February 27, 2017 - Molli Partners LLC has sold its four shoe brands to Teshoeque LLC

    Molli Partners LLC has completed a sale of it's major brands to Teshoeque LLC... 

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Noteworthy

  • October 17, 2017 - Global Private Wealth Dallas Forum on Macroeconomics

    At the 2017 GPW Dallas Forum our Co-CEO, Lynda Davey, spoke alongside other prominent industry executives regarding the current

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  • July 25, 2017 - Retail Summer School at Columbia Business School

    Richard Jaffe, a Managing Director at Avalon, along with Shoptalk, will host the 9th Annual Retail Summer School at

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  • May 10, 2017 - Retail’s Private Equity Legacy: Big Debt, Big Problems

    In an article published by WWD magazine our Co-CEO, Jack Hendler, shares his insight on Private Equity in the

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  • April 04, 2017 - Why Millennials and Mid-Market Firms Are a Fashion Match

    Apparel magazine published an article where our Co-CEO, Jack Hendler, discusses Milennials and Retail...    Read More...

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TA, Friedman to Buy Mattress Maker Tempu

(The Daily Deal) - TA Associates and Friedman, Fleisher & Lowe are teaming up to acquire Tempur World Inc., a Lexingtion, KY-based mattress and pillow maker, in a $350 million leveraged recapitalization.

The two private equity firm said Friday that they had signed a definitive agreement to purchase Tempur from Fagerdala World Foams AB of Gustavsberg, Sweden, a producer of polymer foams.

TA Associates, a Boston buyout firm, plans to invest $95 million in convertible preferred equity and will own a majority of Tempur, according to P. Andrews McLane, a TA senior managing director. In addition, TA will invest $35 million in subordinated debt and warrants.

Friedman, Fleisher, a San Francisco private equity shop, will supply $50 million of convertible preferred funding. A mezzanine debt fund managed by Gleacher & Co. LLC will kick in another $15 million.

The rest of the financing, $150 million of funded senior debt and a revolving credit facility ($20 million of which will be untapped at the deal's closing), will come from GE Capital Corp.

Avalon Group, a New York M&A boutique, advised Tempur, as did the law firms Frost, Brown, Todd LLC of Lexington, KY, and Sidley, Austin, Brown & Wood LLP, New York. The buyers turned to Bingham McCutchen LLP for counsel.

McLane, who wouldn't disclose Tempur's cash flows, said the $250 million revenue company fits the growth profile TA seeks. "We only do so-called growth buyouts," he said. "This company has been growing at better than 20% a year for the past three years. Other mattress and pillow makers don't grow at that rate."

Geographic expansion and aggressive marketing have combined to spur the increase in sales. In the U.S., which accounted for just over half of Tempur's 2001 sales, the company sells its Tempur-Pedic brand bedding through specialty retailers.

"Myself, I don't especially like the mattress," McLane said. "But two of my sons think the pillows are great, and my mother has been sleeping on a Tempur-Pedic mattress for years. Bedding is a matter of personal choice, and a lot of people are Tempur-Pedic fans."