Press release, August 11, 2006
Berkshire Partners Announces Recapitalization of Thrift Retailer Savers, Inc. by Freeman Spogli, Thomas Ellison and Management
Boston, MA - August 11, 2006 - Berkshire Partners LLC today announced the sale of its ownership position in Savers, Inc., the largest for-profit thrift retailer in the U.S., Canada and Australia, in a recapitalization led by Freeman Spogli & Co., Savers' Chairman Thomas Ellison and senior management. Berkshire Partners originally joined Thomas Ellison to recapitalize the Company in May of 2000. Terms were not disclosed.
"Savers' management team has enhanced the Company's industry position by executing a multi-faceted growth strategy during our tenure," stated Kevin T. Callaghan, Managing Director of Berkshire Partners. "The Company has broadened its existing store base, has added new stores both domestically and internationally, and has continued to provide great value and an excellent shopping experience for its customers. These efforts have culminated in a successful investment for Berkshire and our investors."
"Berkshire Partners has provided valuable support and guidance during a strategically important growth stage," said Tom Ellison, Chairman, Savers. "Their extensive retail and consumer expertise, as well as financial guidance have been invaluable in executing our business strategy. Partnering with Freeman Spogli will help us to capitalize on the investments we have made in our Company and achieve the exciting growth opportunities we see in our business."
"This investment reflects our belief in Ken Alterman, Chief Executive Officer of Savers, and his management team as well as the value proposition that Savers offers its customers. Our investment in the Company will provide the continued financial strength and operating flexibility to allow the Company to pursue its growth plans," said John Roth, General Partner of Freeman Spogli & Co.
Headquartered in Bellevue, Washington, Savers purchases merchandise from non-profit vendor organizations and sells the merchandise to the public through its chain of 208 retail thrift stores. The Company's stores are branded Value Village in the Pacific Northwest region of the United States and Canada, Savers in the remainder of the U.S. and Australia, and Village des Valeurs in Quebec, Canada.
CIBC World Markets acted as exclusive financial advisor to Savers and sole lead arranger for the financing. Ropes & Gray provided legal counsel to Berkshire and the Company, and Bingham McCutchen LLP provided legal counsel to Freeman Spogli.
About Savers, Inc.
Founded in 1954, Savers, Inc. is a privately held for-profit international thrift store chain with over 200 locations in the United States, Canada and Australia. Also known as Value Village in the western United States and Canadian provinces (and as Village des Valeurs in Quebec), the company benefits more than 110 local non-profit organizations by purchasing and reselling donated items. The result has been over one billion dollars directly paid to partners and charities. The company employs more than 9,000 people in 23 states, 10 Canadian provinces and Australia. Visit www.savers.com for more information.
About Berkshire Partners LLC
Berkshire Partners has invested in mid-sized private companies for more than 20 years through seven investment funds with aggregate capital commitments of approximately $6.5 billion. Berkshire seeks companies with acquisition values between $200 million and $1.5 billion and in a given transaction makes equity investments of approximately $50 million to $400 million. Berkshire has developed specific industry experience in several areas, including retailing, consumer products, business services, manufacturing, transportation and communications. The firm's transactions have included acquisitions, growth equity investments, and turnarounds. Over the past two decades, Berkshire has been an investor in over 85 operating companies with more than $15 billion of acquisition value and combined revenues in excess of $20 billion. For additional information, visit www.berkshirepartners.com.
About Freeman Spogli & Co.
Freeman Spogli & Co. is a private investment firm dedicated exclusively to investing in and partnering with management in retail, direct marketing and distribution companies positioned for growth. Since its founding in 1983, Freeman Spogli has invested approximately $2.3 billion in 40 portfolio companies with aggregate transaction value of over $14 billion, and is currently making investments from FS Equity Partners V, L.P., a $1.0 billion fund. Freeman Spogli has offices in Los Angeles and New York. For additional information, visit www.freemanspogli.com.