Bob’s Discount Furniture, a furniture and bedding retailer, has signed a definitive agreement to sell a major stake of the company to Bain Capital, a private asset management firm.
The transaction is expected to close in Q1 2014. Detailed financial terms of the agreement were not disclosed, however, a company press released noted that RBC and UBS are providing financing for the transaction; and BofA Merrill Lynch is serving as financial advisor.
“We are thrilled to partner with Bain Capital, a firm that has been investing in great retail businesses and consumer brands for decades,” said Ted English, CEO of Bob’s Discount Furniture, who will continue to lead the company once the acquisition is complete. “Bain Capital brings the experience and resources we need to support our continued expansion to serve more customers in more places, and to provide opportunities for advancement for our people.”
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Based in Manchester, CT, Bob’s Discount Furniture operates 47 stores located throughout the Northeast and Mid-Atlantic regions, and will be opening stores in the Philadelphia, PA area in February 2014. For the past nine nears, private equity firm KarpReilly/Apax has owned the majority of the business.
The Bob’s Discount Furniture acquisition is the latest in a series of retail and consumer business acquisitions for Bain Capital, including Burlington Stores, Dollarama, Dunkin’ Brands Group, Michaels Stores, Outback Steakhouse and Samsonite International.
