Please give our readers a general description of this transaction.
- Sage was engaged by Royal Robbins’ parent company, Kellwood Company (“Kellwood”), to explore strategic alternatives for Royal Robbins (the “Company”). Kellwood is an affiliated portfolio company of Sun Capital Partners.
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Founded in 1968, Royal Robbins is a leading designer, manufacturer, marketer, and retailer of outdoor and travel apparel.
- The Company designs and markets premium quality active sportswear and travel apparel for men, and is well known for designing products with technical features for consumers seeking performance-oriented garments, but with the style and comfort to cross over into everyday life. Royal Robbins can be found in the most respected outdoor and specialty retailers throughout the country and abroad.
- Sage pursued a robust marketing process, and reached out to a select group of strategic and financial buyers most likely to have interest and with the ability to quickly consummate a transaction.
- The transaction attracted interest from among a distinguished group of strategic and private equity firms. Royal Robbins’ brand integrity and authenticity was a key decision making factor in marketing the Company and discussing its potential going forward.
- Sage’s discussions with Bruckmann, Rosser, Sherrill & Co. (“BRS”) advanced rapidly, and the transaction successfully closed in December 2012, with BRS purchasing 100% of the Company.
Why did the timing of this sale make sense for Royal Robbins and Kellwood Company?
Royal Robbins was and continues to perform very well, and the owners were interested in assessing the market’s interest in the brand. There was a general consensus that the brand had been under-marketed to the consumer, and could benefit from the reinvigoration that a new partner can bring.
What made the BRS offer stand out from other offers?
The principals of BRS were fans of the product and brand, which demonstrated itself through their ability to close quickly and confidently, and through their enthusiasm to help the brand reach new levels of awareness and distribution strength.
As they considered their options, our client felt comfortable that BRS’s combination of price, structure, shared strategy, and certainty of close made it the clear choice.
Beyond price, what additional considerations go into a sale like this one?
Similar to most of our transactions, the culture fit with the buyer and management needed to be there, and the team is very excited about what is next for Royal. Given that we were representing a client as part of a corporate divestiture, the usual issue of the proceeds the owners get was only part of the puzzle, since the owners weren’t the same group as the management. BRS needed to put in place a structure that worked for all parties.
In addition, given that the brand had a fairly quiet profile in the marketplace, it was even more important than usual to educate potential buyers about all of the elements of the brand and its core authenticity.
