Trivest portfolio WinsLoew Furniture Inc. has actively expanded its business through acquisition, agreeing to purchase Brown Jordan International Inc. to solidify its presence in casual furniture.
The $100 million acquisition of Brown Jordan is the largest of six that WinsLoew has executed over the last 18 months. With Brown Jordan in the fold, WinsLoew now has an estimated 22 percent market share in the casual furniture category, covering all price points. “We are the most complete casual furniture company in world,” said William Kaczynski, a Trivest managing director. “It’s a very exciting transaction.”
Winstom-Salem, N.C.-based BB&T Capital Markets represented Hancock Park Associates and Desai Capital in the sale of Brown Jordan to WinsLoew Furniture.
WinsLoew’s existing senior secured credit facility was refinanced. The new $225 million senior credit facility was arranged by CIBC World Markets and co-arranged by Antares Capital, GE Capital and Heller Financial. New equity of $54 million was invested in the transaction, $41 million of which was provided from partnerships controlled by Trivest. Kaczynski said Trivest refinanced WinsLoew’s $147 million senior debt with $205 million in newly funded senior credit facilities, added $22 million in subordinated seller notes and $54 million in new common equity. After the closing, WinsLoew’s bank debt and publicly traded senior subordinated notes totaled $311 million, or slightly more than four times pro forma cash flow, Kaczynski said.
WinsLoew has been aggressively seeking acquisition opportunities since being taken private in ’99. WinsLoew was a public company before that – albeit a thinly traded small-cap stock with little analyst coverage.
For a time, Trivest explored sale options for WinsLoew, but ultimately opted to take the company private. In the year ended Dec. 31, 2000, WinsLoew reported operating income increased to $41 million from $36.8 million, up 11.5%. The company’s earnings before interest expense, taxes, depreciation and amortization (Ebitda) was $50.1 million for 2000 compared with $41.6 million in the comparable period, a 20.5% increase.
In 2000, revenues increased 16.5%, to $189 million from $162.1 million, and its gross margin widened to 41.3% from 40.6% in 1999.
WinsLoew CEO Bobby Tesney said the company is looking for further growth opportunities through acquisitions.
WinsLoew Furniture designs, manufactures and distributes commercial and casual furniture under 10 brand names throughout the United States.
Trivest Inc., a private investment firm, is a provider of equity for middle-market corporate acquisitions, recapitalizations and growth capital financings. Since 1981, Trivest has sponsored more than 110 acquisitions, recapitalizations and growth financings, totaling more than $2 billion.