Bain Capital eyes expansion after Bob’s Discount Furniture deal closes

Target: Bob’s Discount Furniture

Price: Undisclosed

Sponsor: Bain Capital 

Seller: Management

Financial Adviser: BofA Merrill Lynch

Legal Counsel: Ropes & Gray LLP

TV viewers in New England and the Mid-Atlantic have long seen co-founder Bob Kaufman in TV commercials for the store chain. The company’s product offerings include a line of mattresses under the Bob-O-Pedic brand. Ted English will continue as chief executive officer of the firm.

“We believe the company’s quality furniture at deep value fills an important need in the market today, and along with the authenticity of the Bob’s brand, should drive sustainable growth for years to come,” Tricia Patrick, a principal at Bain Capital, said in a prepared statement.

The trade publication Furniture Today ranked the Manchester, Connecticut-based company No. 15 on its 2012 Top 100 list of retailers, with 2011 furniture revenue of $639 million. Since then, the store chain has grown into several other markets, with 47 locations now and store openings planned for the Philadelphia area in early 2014. The Boston Globe put the value of the deal at about $350 million.

Among the unique characteristics of Bob’s Discount Furniture: All of its stores feature a complimentary cafe with gourmet coffee, ice cream, fresh baked cookies and candy.

”Since 1991, Bob’s has built strong customer loyalty by offering a vast selection of fashionable and affordable furniture that surpasses ‘discount’ expectations,” the company said on its website.

The company also runs Bob’s Discount Furniture Charitable Foundation and Bob’s Outreach program aimed at helping communities near its stores.

The deal, announced Dec. 30, wraps up a busy year for Bain Capital, with the marquee private equity firm expected to reach $5 billion on its flagship Bain Capital Fund XI and closing one of the biggest mergers of the year, the $6.5 billion deal for BMC Software.

On the retailing side, Bain took Burlington Stores Inc public in Oct. 2 in a deal that raised $227 million at $17 per share. The stock is now trading above $32 a share.

Bain Capital’s retailing experience includes Michael’s Stores, Dunkin’ Brands Group, Outback Steakhouse, Burlington Stores, Dollarama and Samsonite. One of the firm’s first signature deals was the office-supply retailer Staples.