News

Affiliate of Sun Capital Partners, Inc. Completes Sale of Hanna Andersson

Omni-Channel Retail Platform Evolution and Growth Investments Drove Powerful Results

Sun Capital Partners, Inc. (“Sun Capital”), a leading private investment firm specializing in leveraged buyouts and investments in market-leading companies, today announced that an affiliate has completed the sale of its investment in Hanna Andersson LLC (“Hanna Andersson” or “the Company”), a leading retailer of lifestyle branded apparel for children. Terms of the private transaction were not disclosed.

Headquartered in Portland, Oregon, Hanna Andersson is known for its iconic, globally-recognized branded children’s apparel products that exhibit superior quality, classic styling, and unique designs that “let kids be kids.” The company’s diverse product offering targets babies, boys, and girls from newborn to 12 years old.

In 2008, Hanna Andersson was spun out of Kellwood Company as an independent entity to create greater focus on product development, channel expansion, and growth opportunities in a challenging retail environment. The strategy proved successful, as Hanna Andersson more than doubled its retail store count from 27 to 65 locations, while substantially growing its direct-to-consumer business through catalog and e-commerce enhancements.

“We saw tremendous potential for Hanna Andersson to succeed as a standalone business, and our team worked with Company management to devise and execute an operationally-focused strategy that transformed that potential into strong results,” said Marc Leder, Co-CEO of Sun Capital. “We’re very pleased at what we have achieved together, and feel that Hanna Andersson is well-positioned to continue its growth trajectory under new ownership.”

During the Sun Capital affiliate’s ownership, Hanna Andersson augmented the senior management team, implemented cost savings initiatives, improved sourcing strategies, and made several operational improvements that contributed to its success. The Company evolved to an omni-channel retail platform providing a seamless customer experience across its direct marketing/catalog, e-commerce, and retail channels. Additionally, Hanna Andersson enhanced its in-store merchandising strategy to broaden appeal and extend its customer reach, launched a new store design with improved unit economics, and implemented infrastructure improvements to support continued growth and geographic expansion.

“Hanna Andersson is a great example of Sun’s expertise in prudently investing in and supporting accelerated growth,” said Jonathan Jackson, Vice President at Sun Capital. “We applied our past experience to ensure the Company would have the operational resources, processes, and financial infrastructure required to achieve its growth strategy. Having this operational plan in place at the outset enabled Hanna Andersson to quickly begin execution and seize its market opportunity.”

Sun Capital has strong experience in the retail sector through current affiliated portfolio companies Bonmarché, one of the UK’s largest value retailers focused on affordable, quality womenswear; The Limited Stores, a specialty retailer offering upscale branded women’s contemporary American casual and working apparel; Scotch & Soda, a leading designer, marketer, wholesaler and retailer of contemporary casual apparel for men, women and children; and Vince, a prominent fashion brand known for its modern effortless style and everyday luxury essentials.

Harris Williams & Co. and Financo LLC served as co-lead advisors to Hanna Andersson on the transaction. Kirkland & Ellis served as legal counsel to the Company.