Sarowdin Partners was hired by Baskins Group, Ltd. as its exclusive financial advisor to assist in the sale of the Company. Headquartered in Livingston, Texas, Baskins operates 16 retail locations in East Texas with a focus on western, work and weekend wear. The company was owned by a group of individual private equity investors.
The investor group had successfully transitioned the Company from a family run to a professionally run enterprise. During this period, the investor group opened four new locations; however, the belief was that a new owner could greatly accelerate the new store openings and build a sizeable retail business. After a broad marketing effort, Baskins was sold to an investor group led by Consumer Growth Partners, a fundless sponsor focused on acquiring and building retail and consumer product businesses and an early investor in Build-A-Bear. The majority of the junior capital for the transaction was provided by Diamond State Ventures and Banyan Mezzanine Fund. The transaction closed on July 14, 2009.
“Baskins Group Ltd. retained Sarowdin Partners to sell the Company following their successful sale of Baskins' competitor, Coopers Inc., at a premium valuation to a strategic buyer. In order to prove out the Baskins' growth opportunity, Sarowdin Partners worked with me and the Company to build a very detailed model, which enabled the financial impact of a variety of assumptions to be determined. Despite this upfront effort, the transaction took considerable time to come together. Sarowdin Partners was successful in keeping all of the constituencies that were a party to this deal "in the boat" and focused on the finish line. As a result, we were able to successfully close the transaction in a very difficult economy, especially among retailers, and realize a significant return on our invested capital as well as provide our employees with a partner that could help them take the business to the next level."*
*Client results may not be representative of the experience of others and is no guarantee of future performance or success.