Juvenile Products
Coverage Report
“Market Intelligence for Industry Players”
Capstone Partners
Investment Banking Advisors
BOSTON | CHICAGO | LOS ANGELES | PHILADELPHIA
Q1 2012
Juvenile Products
Coverage Report
2011 M&A COMMENTARY
CAPSTONE PARTNERS LLC
176 Federal Street
3rd Floor
Boston, MA 02110
www.capstonellc.com
M&A activity in the juvenile products market has been consistently strong throughout
2010 and 2011 with 76 deals reported for the two years. There was a marked decline in
activity in 2009 as companies were more focused on organic growth versus growing via
acquisitions during the recessionary economic period. There is currently an elevated
interest from both buyers and sellers in the industry, and M&A activity remained strong
in 2011 with 32 announced transactions during the year, 10 more than in 2009. As the
juvenile products industry becomes more competitive, major players are seeking to
capture market share via acquisitions.
John Ferrara
President, Managing Partner
Direct (617) 619‐3325
jferrara@capstonellc.com
Juvenile Products Transactions by Quarter
44
45
Kevin Jolley
Managing Director
Direct (617) 619‐3330
kjolley@capstonellc.com
2009
40
2010
35
2011
32
30
Jacob Voorhees
Director, Principal
Direct (617) 619‐3323
jvoorhees@capstonellc.com
25
22
20
15
15
Sophea Chau
Senior Associate
Direct (617) 619‐3307
schau@capstonellc.com
11
8
10
5
13
11
8
6
4
3
7
7
5
0
Q1
Q2
Q3
Based on announced date and includes M&A
transactions in North America and Europe
Q4
Total
Source: Capital IQ
Transactions in this space have been driven by improving market conditions and revival of
demand, as well as an interest in product portfolio diversification. An important driver is
also brand recognition; firms are willing to pay top‐dollar for well known and trusted
brands.
INDUSTRY OVERVIEW
The U.S. juvenile products industry is a $17.8 billion market, which is comprised of
companies engaged in the manufacturing of durable goods for children from infancy to
age five. Juvenile products include cribs, high‐chairs, baby bedding and linens, strollers,
car seats, carriages and toys targeted specifically to infants and toddlers. Growth in this
industry is driven primarily by changes in consumer spending, domestic birth rates, the
popularity of second‐hand marketplaces and perceptions of necessity among consumers
for various juvenile products.
1
Q1 2012
The recessionary period in 2008 and 2009 marked a stark decline in both disposable
income and consumer expenditures. According to the U.S. Bureau of Labor Statistics
(BLS), while pre‐tax income declined 1.1% from 2008 to 2009, consumer
expenditures declined 2.8%, and expenditures for discretionary items such as
apparel declined as much as 4.2%. As the economy and consumer confidence
continue to improve, demand for juvenile products should improve as well.
Furthermore, after peaking in 2007, births rates in the U.S. decreased from 14.3 to
13.7 births per thousand in 2009, a 4% decline. This is an important factor for
juvenile goods as it drives the size of the available market of children aged 0‐5.
According to the CIA World Factbook estimates, the birth rate in 2010 grew slightly
to 13.8 births per thousand.
The juvenile products industry is expected to grow 4.4% per year from 2010 through
2015 to reach a market size of $22.1 billion. Growth is primarily driven by the
expansion of the baby accessories segment, including items such as strollers, car
seats and baby monitors, which is expected to grow 5.9% annually through 2015.
For the same period, the other major segments, toys and furnishings, are expected
to grow 3.5% and 3.8%, respectively.
Juvenile Products Industry Revenue (2006‐2015)
$25.0
$36
$34
$15.0
$33
$10.0
$32
$5.0
($ thousands)
Disposable Income $35
$20.0
Revenue ($ billions)
“As the economy and consumer confidence continue to improve, demand for juvenile products should improve as well.”
Juvenile Products
$31
$0.0
$30
'06A '07A '08A '09A '10A '11E
Furnishings
Accessories
'12E
Toys
'13E
'14E
'15E
Disposable Income
Source: Packaged Facts, IBIS World
SAFETY & REGULATION
One of the most significant factors affecting success in the juvenile industry is safety
certification. Because the end market is young children and infants, safety concerns
are among the most important considerations in purchasing decisions. Unsafe
designs or materials in this industry can result in high‐profile recalls and damaged
brand names. Regulations on juvenile products typically impose limitations based on
two product characteristics: design and material.
2
Q1 2012
Juvenile Products
INDUSTRY TRENDS
Annual births, expected to grow 1% annually, and rebounding market conditions should contribute to a boost in demand for juvenile products over the next five years.
The juvenile goods industry is subject to a number of factors that affect both top and
bottom line performance. Among these factors are a competitive second‐hand
market, birth rates and consumer spending. These factors are related to movements
in the overall economy, and are expected to drive growth in the industry looking
forward over the next five years as the economy continues to rebound.
Birth Rates – Demand for juvenile products is unsurprisingly driven by the number of
children aged 0‐5 in the population at any given time. The number of infants born in
the United States peaked in 2007 at 4.3 million births, before declining 3% to 4.1
million in 2009; in 2010, births began to rebound to nearly pre‐recession levels. New
births in the United States are expected to continue to grow at about 40,000
additional births each year into the foreseeable future, representing a growth rate of
approximately 1% annually through 2015. As the number of newborns increases, the
juvenile products market is expected to expand as well.
Second‐hand Market – The marketplace for second‐hand juvenile products
expanded considerably during the recession in 2008 and 2009, which has resulted in
a decline in sales for juvenile product manufacturers and traditional retailers. Due to
their high durability and limited useful life per consumer, juvenile products are a
popular product to be purchased second‐hand from tag‐sales, consignment shops or
other second‐hand online retailers such as Craigslist or eBay. Not all juvenile
products are as susceptible to second‐hand resale. Baby furniture has the highest
incidence of second‐hand purchases or borrowing, whereas car seats, strollers and
carriers are most likely to be purchased new due to safety concerns associated with
these products. Popularity of the second‐hand market thrives when the economy
experiences a downturn, as in 2008 and 2009, but is expected to decline as the
economy continues to rebound, which should drive demand for new juvenile
products going forward.
Increasing Role of the Internet – In the retail market, online sales are by far the
fastest growing channel, expected to steal 7% of retail sales from traditional retailers
by 2015. This conversion to Internet retail is not limited to juvenile products and is
driven by consumers seeking maximization of value and convenience. Online
retailers often offer lower prices and easy price comparison across brands and
retailers. In addition, Mintel reports that 76% of mothers utilize the Internet when
evaluating options prior to purchase. During the five years to 2015, the role of the
Internet is expected to become more pronounced, and web presence will become a
competitive advantage for brands competing in the juvenile products space.
“Age Compression” in Children’s Toys – Specific to the toy segment is the “age
compression” phenomenon, wherein children outgrow child/infant toys at
increasingly younger ages. This trend is largely influenced by the influx of more
sophisticated video game systems into the younger age market. The effect of age
compression is stagnant demand and a need for toys that can compete or
complement virtual and interactive toys and games. The impact of age compression
can be witnessed in the toy segment performance over the last five years, posting
moderate gains of only 2.0% annually, below the industry growth rate of 3.3%.
3
Q1 2012
Juvenile Products
SELECTED JUVENILE PRODUCTS M&A TRANSACTIONS
Date
Target
Acquiror
Target Business Description
12/25/11
Baby Trend, Inc.
GIA Investments Corp.
Manufactures juvenile products.
11/21/11
Orbit Baby, Inc.
The ERGO Baby Carrier, Inc.
10/20/11
BOB Trailers, Inc.
09/19/11
ImagiPlay, Inc. 06/16/11
Enterprise
Value (mm)
EV / LTM
Revenue EBITDA
‐
‐
‐
Offers a stroller travel system, bassinet cradle, base, infant car seat, toddler car seat, stroller seat, sidekick stroller board and accessories.
$17.5
‐
‐
Britax Group Ltd.
Engages in the design, manufacture, and sale of strollers, trailers, and accessories for babies.
CF
CF
CF
BeginAgain, Inc. Designs, produces and markets high‐quality and eco‐friendly educational toys.
‐
‐
‐
Rhino Toys, Inc. and Kids II, Inc.
Taggies, Inc.
Design, manufacture, and market toys and baby care products. ‐
‐
‐
05/31/11
Chariot Carriers Inc.
Thule AB
Designs, produces, and supports child carrier products, including rolling strollers, bicycle trailers, hiking trailers, and side carriers. ‐
‐
‐
05/23/11
Svan of Sweden AB
Scandinavian Child, LLC
Designs, manufactures and markets high chairs, bouncers, scooters, mini furniture and baby covers.
‐
‐
‐
04/18/11
Tullsa AB and Sun Toy AB
ValueTree Holdings AB
Develops and manufactures equipment for strollers and distributes toys.
‐
‐
‐
03/28/11
BornFree Holdings Ltd.
Summer Infant (USA), Inc.
Develops and manufactures baby feeding bottles, training cups, drinking cups and other baby accessories.
$24.6
1.6x NM
03/10/11
RC2 Corporation
Tomy Corporation
Designs, produces, and markets toys, collectibles, and infant and toddler products.
$625.4
1.5x 11.1x 02/04/11
SaraBear Company LLC
Munchkin, Inc.
Produces diaper caddies.
‐
‐
‐
12/22/10
Baby Solutions SA
Lansinoh
Laboratories, Inc.
Develops and markets baby feeding products under the brand name mOmma. $4.2
2.2x ‐
11/21/10
Britax Childcare Holdings Ltd.
Nordic Capital
Designs, assembles, manufactures and markets child safety car seats, including infant carriers, child safety seats and wheeled goods. $720.1
2.2x ‐
10/15/10
Beaba S.A.S
Edmond de Rothschild Capital Partners
Manufactures and sells feeding bottles and warmers, sterilizers, and teats, suction products, bed time products and security products.
$168.4
3.4x ‐
09/17/10
The ERGO Baby Carrier, Inc.
Compass Diversified Holdings
Manufactures and markets infant inserts, front pouches, back packs, changing pads, sucking pads, weather covers and hood replacements. $91.0
‐
7.0x 08/04/10
JJ Cole Collections
RC2 Corporation
Develops and markets mother, infant, and toddler stylized travel, storage, and convenience products
$40.0
2.6x ‐
01/14/10
Lindam Limited
Munchkin, Inc.
Designs, develops, and manufactures child safety products, such as safety gates, bed guards, play pens, and door bouncers and monitors.
‐
‐
‐
12/08/09
Classy Kid, Inc.
Summer Infant, Inc.
Classy Kid, Inc. manufactures and markets accessories for baby and toddler healthcare. ‐
‐
‐
07/02/09
Neat Solutions, Inc.
Hamco, Inc.
Provides disposable placemats, floor mats and carpets, car seat covers, burp cloths, absorbent pads, changing pads and bibs.
$4.4
‐
‐
06/16/09
NettoCollection, LLC Maclaren USA Inc.
Designs and manufactures juvenile furniture including cribs and crib mattresses, dressers, changers and related accessories.
‐
‐
‐
04/01/08
LaJobi Industries, Inc. Kid Brands, Inc.
Designs, engineers, markets and distributes baby and children furniture and accessories.
$68.8
1.1x 7.7x LTM = last twelve months; EV = enterprise value; CF = confidential
Transactions highlighted in yellow were completed by Capstone Partners
Source: Capstone Research, Capital IQ, company public filings and press releases
Mean
2.0x 8.3x Median
2.0x 7.5x Harmonic Mean
1.8x 8.0x 4
Q1 2012
Juvenile Products
SELECTED NOTABLE TRANSACTIONS
Britax Group Ltd. acquires BOB Trailers Inc. – BOB Trailers is a leading manufacturer
and marketer of innovative high quality brand of jogging strollers. Britax Group,
based in Chertsey, U.K., is a manufacturer and marketer of children car safety seats
and strollers. The cross‐border transaction between BOB and Britax combined two
segment leaders with tremendous brand recognition and broad global distribution
channels. Capstone Partners represented the shareholders of BOB Trailers in the
transaction.
Summer Infant, Inc. (NASDAQ:SUMR) acquires Bornfree Holdings – Bornfree is a
BPA‐free baby feeding product producer, and offers baby feeding bottles; toddler
training cups, drinking cups and straw cups; teething and soothing products such as
pacifiers and teethers; breastfeeding pumps; and accessories including sterilizers,
formula dispensers, twister brushers and silicone sleeves. In March 2011, Summer
Infant acquired the company for approximately $25 million in order to enter the
higher margin baby feeding industry and diversify its product portfolio.
Tomy Company, Ltd. acquires RC2 Corporation – RC2 Corporation designs, produces
and markets toys, collectibles and infant and toddler products. The company offers
infant and toddler feeding gear, care and play products under the First Years and
Lamaze brands, as well as breast pumps, baby monitors and convertible car seats.
The company offers toys under Learning Curve, Johnny Lightning, Thomas & Friends
and Ertl brands. Tomy Corporation, a subsidiary of Tomy Co. Ltd. acquired the
company for $625 million in March 2011 to add the Thomas the Tank Engine brand
to its portfolio which includes Pokémon and Transformers. The company sought to
revive sales when declining birthrates eroded Japanese demand.
Lansinoh Laboratories, Inc. acquires Baby Solutions, SA – Baby Solutions SA
produces baby feeding and drinking products such as specialty bottles, spoons,
plates, soothers and bags under the mOmma brand. In January 2011, Lansinoh
Laboratories acquired the company for $4.2 million due to the attractiveness of the
mOmma brand and the juvenile products market.
Nordic Capital acquires Britax Childcare Holdings ‐ Britax designs, assembles and
markets child safety car seats including infant carriers, child safety seats, strollers,
children’s car seats and wheeled goods. The company was acquired by Nordic
Capital in line with the buyout firm’s strategy of investing in automobile components
and accessories. This acquisition (November 2010) represents the largest transaction
in this space in 2010 and 2011, having an implied enterprise value of £450 million
(approximately $720 million).
Edmond de Rothschild Capital Partners acquires Beaba SAS ‐ Beaba manufactures
and sells baby products including feeding products such as bottles and warmers,
sterilizers and teats; suction products, such as soothers; bouncing chairs and
accessories; baby changing bags; bath and toilet products; bedtime products and
child‐proof locks. The company was acquired by Edmond de Rothschild Capital
Partners for $168 million in October 2010, nearly 3.5 times the company’s revenues
for the year prior.
5
Q1 2012
Juvenile Products
PUBLIC COMPANY TRADING & OPERATING DATA
Price
% 52 Wk.
12/30/11
High
Cap
Value
Revenue
EBITDA
Margin
Growth
$3.29
63.0%
$ 31.8 $ 32.8 $ 88 $ 8
9.6%
0.5%
0.4x
3.9x
Dorel Industries Inc.
$25.13
72.6%
802.4 1,106.4 2,342 164
7.0%
1.0%
0.5x
6.8x
Hasbro Inc.
$31.89
63.6%
4,113.3 5,324.5 4,235 746
17.6%
3.3%
1.3x
7.1x
Kid Brands, Inc.
$3.16
32.4%
68.4 131.9 265 10
3.9%
‐1.2%
0.5x
12.8x
LeapFrog Enterprises Inc.
$5.59
90.5%
368.0 342.3 435 29
6.6%
0.8%
0.8x
12.0x
Mattel Inc.
$27.76
94.4%
9,400.8 10,343.1 6,237 1130
18.1%
9.7%
1.7x
9.2x
Newell Rubbermaid Inc.
$16.15
79.2%
4,675.4 6,854.6 5,912 876
14.8%
4.9%
1.2x
7.8x
$7.04
74.3%
122.7 184.7 234 18
7.7%
28.0%
0.8x
10.2x
10.7%
5.9%
0.9x
8.7x
Median
8.6%
2.2%
0.8x
8.5x
Harmonic Mean
8.3%
NA
0.7x
7.7x
Company
Crown Crafts Inc.
Summer Infant, Inc.
Market Enterprise
LTM
1‐Yr Rev
Mean
EV = enterprise value; LTM = last twelve months
$ is millions, except per share data
EV / LTM
Revenue EBITDA
Margin Performance
60.0%
49.7%
50.0%
49.4%
41.2%
37.4%
40.0%
30.0%
25.4%
21.9%
21.2%
10.0%
18.1%
17.6%
20.0%
9.6%
34.3%
7.0%
3.9%
14.8%
7.7%
6.6%
0.0%
Crown Crafts
Dorel
Industries
Hasbro
Kids Brands
Gross Margin %
LeapFrog
Mattel
Newell
Summer Infant
Rubbermaid
EBITDA Margin %
Last Twelve Months 1‐Year Revenue Growth
28.0%
30.0%
25.0%
20.0%
15.0%
9.7%
10.0%
5.0%
0.5%
1.0%
4.9%
3.3%
0.8%
0.0%
‐1.2%
‐5.0%
Crown Crafts
Dorel
Industries
Hasbro
Kids Brands
LeapFrog
Mattel
Newell
Summer Infant
Rubbermaid
Source: Capital IQ as of December 30, 2011
6
Q1 2012
Juvenile Products
PUBLIC COMPANY PROFILES
Crown Crafts Inc. (NASDAQ:CRWS) offers infant and toddler products primarily in the
United States. The company produces crib and toddler bedding; blankets; nursery
accessories; room décor; burp cloths; bathing accessories; disposable placemats,
covers and changing mats; reusable bibs and floor mats. The company was founded
in 1957 and is headquartered in Gonzales, Louisiana.
Dorel Industries, Inc. (TSX:DII.B) designs, manufactures, markets and distributes
various consumer products in the United States, Canada and Europe and operates in
three segments: Juvenile Products, Recreational/Leisure and Home Furnishings. In
the Juvenile Products segment, the company offers car seats, strollers, high chairs,
toddler beds, playpens, swings and infant heath and safety aids under the Cosco,
Safety 1st, Maxi‐Cosi, Quinny, Babideal, Bebe Confort, Baby Relax and MonBebe
brand names. The company’s Recreational/Leisure segment offers bicycles, jogging
strollers and athletic gear. The Home Furnishings segment produces ready‐to‐
assemble furniture, futons, ladders, home theatre units and other imported furniture
items. The company was founded in 1962 and is headquartered in Montreal,
Canada.
Hasbro, Inc. (NASDAQ:HAS) designs, manufactures and markets games and toys.
The company offers various games including traditional board, card, hand‐held
electronic, trading card, roleplaying and DVD games; and electronic learning aids and
puzzles. The company also offers a wide array of toys including boy’s action figures,
vehicles and play sets; girl’s toys; electronic toys, plush products, preschool toys and
infant products; electronic interactive products; creative play products; and toy
related specialty products. The company also licenses certain trademarks, characters
and other property rights to third parties. It offers its products under Playskool,
Transformers, Nerf, My Little Pony, Littlest Pet Shop, Tonka, G.I. Joe, Super Soaker,
Milton Bradley, Parker Brothers, Cranium, Avalon Hill, Tiger, Furreal Friends, Baby
Alive, Strawberry Shortcake and Wizards of the Coast brand names. The company
also has strategic agreements with Electronic Arts Inc. and Universal Pictures. The
company was founded in 1923 and is headquartered in Pawtucket, Rhode Island.
Kid Brands, Inc. (NYSE:KID) designs, imports, markets and distributes infant and
juvenile consumer products. The company produces infant bedding, nursery
accessories and décor such as blankets, rugs, mobiles, nightlights, hampers, lamps
and wall art under the Kids Line and CoCaLo brands; cribs, mattresses and other
nursery furniture under the Babi Italia, Europa Baby, Bonavita, Graco and Serta
brands; and developmental toys, feeding, bath and baby care items under the Sassy
brand names. The company was founded in 1963 and is based in East Rutherford,
New Jersey.
7
Q1 2012
Juvenile Products
LeapFrog Enterprises, Inc. (NYSE:LF) provides technology‐based learning platforms
worldwide. It provides reading systems, educational gaming products, electronic and
interactive games and toys and an online tool that helps parents track what their
children are learning with its Web‐connected products. The company was founded in
1995 and is headquartered in Emeryville, California.
Mattel, Inc. (NASDAQ:MAT) designs, manufactures and markets various toy products
worldwide. It produces fashion dolls and accessories, vehicles and play‐sets and
games and puzzles. The company offers its toys under a number of brands including
Barbie, Polly Pocket, Little Mommy, Disney Classics, Monster High, Hot Wheels,
Matchbox, Battle Force 5, Tyco R/C, CARS, Radica, Toy Story, Max Steel, WWE
Wrestling and Batman. For its younger audience, the company offers toys under the
Fisher‐Price, Little People, BabyGear, View‐Master, Dora the Explorer, Go Diego Go!,
Thomas and Friends, Sing‐a‐ma‐jigs, See ‘N Say and Power Wheels brand names. The
company also offers dolls under My American Girl and Bitty Baby brands. The
company was founded in 1945 and is headquartered in El Segundo, California.
Newell Rubbermaid, Inc. (NYSE:NWL) designs, manufactures, sources, packages and
distributes consumer and commercial products and is engaged in three segments:
Home & Family, Office Products and Tools, and Hardware & Commercial Products.
The Home & Family segment offers juvenile products such as car seats, strollers,
highchairs and play‐yards, as well as cookware, bake ware, small kitchen electronics,
grooming products and home décor. The Office Products segment offers writing
instruments, office technology solutions and art and office organization products.
The Tools, Hardware & Commercial Products segment offers hand tools, power tool
accessories, window hardware and cleaning and refuse products. The company
markets its products under Rubbermaid, Graco, Aprica, Levolor, Calphalon, Goody,
Sharpie, Paper Mate, Dymo, Parker, Waterman, Irwin, Lenox and Technical Concepts
brand names, and was founded in 1903 with its headquarters in Atlanta, Georgia.
Summer Infant, Inc. (NASDAQ:SUMR) designs, markets and distributes branded
juvenile health, safety and wellness products in North America and the United
Kingdom. The company offers nursery audio/visual monitors, safety gates, durable
bath products, bed rails and related health and safety products, booster seats, potty
seats, bouncers and a line of soft goods and baby bedding. It also offers cribs, baby
gear, infant sleep positioners, head supports, portable changing pads and nursery
and feeding accessories. The company is headquartered in Woonsocket, Rhode
Island and was founded in 1984.
8
Q1 2012
Juvenile Products
THE JUVENILE PRODUCTS TEAM
John Ferrara, President and Managing Partner
jferrara@capstonellc.com • (617) 619‐3325
John Ferrara, the founder and principal shareholder of Capstone, serves as the firm's President
and Managing Partner. Over his extensive career in investment banking, venture capital and
management consulting, John has executed over 100 related engagements representing in
excess of $6 billion in value. John was formerly a Regional Managing Partner with Andersen
Corporate Finance, where he founded the Boston office and held various national and global
leadership positions. He started his career in Lehman's Brothers' M&A group in New York,
London and Riyadh, later becoming a founding member of Rodman & Renshaw's M&A
practice in New York. He earned an MBA in Entrepreneurial Studies from The Anderson School
at UCLA and the London School of Economics, during which time he founded and operated a
corporate finance advisory boutique, JG Atlas Advisors, and its related investment arm,
Atlantis Capital Partners. He holds dual BA degrees from Wesleyan University and is qualified
as a General Securities Principal.
Kevin Jolley, Managing Director
kjolley@capstonellc.com • (617) 619‐3330
Kevin has over 18 years of investment banking, syndicated bank loan and corporate finance
experience. He leads Capstone's Consumer & Industrial Products practice and is a member of
the Board of Directors. His transaction experience includes managing complex engagements
for clients in a variety of industries including consumer products, industrial products, medical
devices, biotechnology, business services, software, and distribution. Prior to joining Capstone,
Kevin served as a Vice President in the Investment Banking Group at Adams Harkness. Kevin
also served as an Associate in the Debt Capital Markets Group of FleetBoston Robertson
Stephens, Inc. Before Fleet, Kevin was at Textron Inc. where he worked in the Strategic
Planning, Internal Audit and Mergers & Acquisitions departments. He also has four years of
finance experience with Oracle Corporation. Kevin received his B.A. from Brown University
and his M.B.A. from the University of Pennsylvania’s Wharton School. He is registered with
FINRA and is qualified as a General Securities Representative.
Jacob Voorhees, Director and Principal
jvoorhees@capstonellc.com • (617) 619‐3323
Jacob is a founding member of Capstone Partners and focuses on asset positioning, strategy
articulation, due diligence and negotiations coordination. Formerly, Jacob was with Andersen
Corporate Finance LLC, where he focused his efforts on the software and direct marketing
industries. He started his career in New York City with Rabobank International, a multi‐
national Dutch investment bank headquartered in Utrecht, the Netherlands. While at
Rabobank International, Jacob worked in the mergers and acquisitions group focusing on
cross‐border transactions in the consumer products, food and beverage industries. Jacob holds
dual BS degrees from Cornell University and is qualified as a General Securities Representative.
Sophea Chau, Senior Associate
schau@capstonellc.com • (617) 619‐3307
Sophea joined Capstone in 2008 and specializes in mergers & acquisitions, private placements
and financial advisory services. Her responsibilities include providing financial and valuation
analysis, performing due diligence and drafting all marketing materials. Prior to joining
Capstone, Sophea was an analyst at FTN Midwest Securities, a full‐service investment banking
firm based in Cleveland. While working in their New York office, she focused on M&A advisory
for middle‐market companies in a variety of industries, including healthcare, pharmaceutical
services and marketing & advertising. Sophea is on the Board of the Columbia University Club
of New England and is the Chairperson of the Boston Columbia College Young Alumni group.
Sophea holds a Bachelor of Arts in Economics from Columbia University.
9
Q1 2012
Juvenile Products
CAPSTONE PARTNERS ADVISES BOB TRAILERS ON SALE TO BRITAX GROUP
DONE
DEAL
Chertsey, U.K. ‐ November 14, 2011 ‐ Capstone Partners LLC, a leading national
investment banking firm, announced that it has successfully advised BOB
Trailers, Inc. on its acquisition by Britax Group Limited, a portfolio company of
Nordic Capital Fund VII. The transaction marks the international unification of
two of the top brands in the juvenile products category. The terms of this
transaction were not disclosed.
has been acquired by
a portfolio company of

The undersigned represented
BOB TRAILERS, INC.
Capstone Partners
Investment Banking Advisors
Headquartered in the UK with major facilities in the UK, Germany, Australia and
the U.S., Britax is the world’s premier brand for children car safety seats and
strollers. Britax successfully expanded into the stroller market by launching its B‐
range of strollers in recent years (B‐Ready, B‐Smart, B‐Mobile and B‐Scene). The
company complemented its stroller offering earlier this year when it introduced
its innovative, quick‐folding B‐Agile stroller. Britax car seats and strollers are sold
globally in all major retailers and specialty stores. Additional information about
Britax can be found at www.britax.com.
BOB, which began in 1994 as a manufacturer of bicycle trailers, is widely
considered America’s premier provider of innovative, design oriented high
quality “sport utility” or jogging strollers. BOB’s line of successful products
include the BOB Revolution SE and CE as well as BOB Ironman®, BOB Sport Utility
Stroller and the BOB Stroller Strides®*Fitness Stroller. Based in Boise, Idaho,
the company now makes a full line of multi‐functional strollers and accessories
that is sold at retailers and specialty stores across the U.S. and Canada.
Additional information about BOB Trailers can be found at www.bobgear.com.
Karl Kahofer, CEO of Britax Child Safety, commented, “We’ve admired for some
time BOB’s ingenuity and commitment to customers and are convinced that its
products, customer service, and business ethics make it a natural fit for Britax.
This purchase reinforces Britax’s global leadership in child safety and mobility,
and is fully in line with our international growth strategy. We have no plans to
change the BOB name; in fact we are excited to expand the BOB product range
globally.”
BOB cofounder and CEO, Roger Malinowski, is equally enthusiastic about the
acquisition. “When we started this company more than fifteen years ago,” he
said, “we simply wanted to design and manufacture the world’s best single‐
wheel bike trailers, and later, the world’s best strollers for active, sports‐minded
parents. When you look at the thoughtful engineering behind the Britax stroller
line and the revolutionary design behind its car seats, you can see why our two
companies will fit well together.”
The Capstone M&A team of John Ferrara, Managing Partner, Jacob Voorhees,
Director, and Sophea Chau, Associate (based in Boston, MA), managed the
transaction on behalf of BOB. “Our consumer products group was very proud to
represent BOB Trailers in this landmark cross‐border transaction. We believe
the legacy that Roger Malinowski has built in the BOB brand will be expanded
globally through Britax’s broad international distribution channels.”
10
ABOUT CAPSTONE PARTNERS
Capstone Partners LLC is a leading national investment banking firm dedicated to serving the corporate finance needs of middle market
business owners, investors and creditors. The firm provides merger & acquisition, private placement, corporate restructuring, valuation
and financial advisory services. Capstone maintains various industry specialties including business services, consumer products,
education & training, government services, health & medical, manufacturing & industrial, and technology & media. The firm also
possesses merchant banking capabilities to actively co‐invest in transactions.
Additional information about Capstone Partners can be found at www.capstonellc.com.
NATIONAL AND REGIONAL LEADERSHIP TEAM
NATIONAL
John Ferrara
President, Managing Partner
(617) 619‐3325
jferrara@capstonellc.com
NORTHEAST REGION
Kevin Jolley
Managing Director
(617) 619‐3330
kjolley@capstonellc.com
CORPORATE RESTRUCTURING
Brian Davies
Managing Director
(617) 619‐3328
bdavies@capstonellc.com
MIDATLANTIC REGION
Eric Williams
Managing Director
(215) 854‐4065
ewilliams@capstonellc.com
VALUATION ADVISORY
Ron Adams
Managing Director
(617) 619‐3367
radams@capstonellc.com
MIDWEST REGION
Ted Polk
Managing Director
(312) 674‐4531
tpolk@capstonellc.com
WESTERN REGION
David Bench
Managing Director
(949) 460‐6431
dbench@capstonellc.com
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www.capstonellc.com
© 2012 Capstone Partners LLC. All rights reserved.