Sundance Holding Company LLC, a portfolio company of Brentwood Associates, has completed a dividend recapitalization. Sundance expanded an existing credit facility to fund the dividend, part of which will be used to fund a nationwide store expansion. Salt Lake City-based Sundance is a direct marketer and specialty retailer of apparel and accessories, jewelry and home furnishings.
LOS ANGELES, July 22, 2015 – Brentwood Associates (“Brentwood”), a consumer-focused private equity investment firm, announced that Sundance Holding Company, LLC (“Sundance”), a portfolio company, has completed a dividend recapitalization. The dividend was financed through an expansion of the existing credit facility. As part of the transaction, Sundance has increased flexibility to fund its nationwide retail store expansion strategy.
Sundance (www.sundancecatalog.com), founded by Robert Redford in 1989 and headquartered in Salt Lake City, UT, is a leading multi-channel direct marketer and specialty retailer of apparel and accessories, jewelry and home furnishings. The company’s products are offered through its catalogs, website, an outlet store and retail stores located in Corte Madera, California and Denver, Colorado. The company shares its heritage with several other Sundance brand entities, including the Sundance Channel, the Sundance Institute, Sundance Cinemas and the Sundance Resort.
Eric Reiter, a Partner at Brentwood, commented, “We are thrilled with Sundance’s outstanding operating results. Significant sales and earnings growth since acquisition have enabled the dividend recapitalization, while continuing to provide financial flexibility for our national retail expansion.”
Sundance is embarking on a nationwide store expansion strategy, and the new debt financing includes a designated facility to fund future store openings. Two newly designed retail locations will open in the fourth quarter of 2015 at the Galleria in Edina, Minnesota and the NorthPark Center in Dallas, Texas. Additionally, the company has multiple stores identified for 2016. According to CEO Matey Erdos, “We are excited to bring the Sundance experience to our customers through our nationwide retail expansion, and we are confident they will enjoy the benefits of our growing network of stores. After 25 years of building a loyal and enthusiastic following, we feel the time is right to lay the foundation for our next phase of growth.”
The design of the new stores is artisan inspired to promote the brand’s heritage. The company is rooted in the American West, and Erdos says, “The aesthetics of our stores will further the Sundance vision, embracing the spirit of creativity and fostering individuality and independent expression.” The retail locations will offer apparel, footwear, jewelry, home décor and home furnishings. One-of-a-kind pieces and items exclusive to Sundance will be the cornerstone of the product offering.
The dividend recapitalization caps a highly active twelve months for Brentwood. During this time, Brentwood has completed three new portfolio investments, Marshall Retail Group, Z Gallerie, and Excelligence Learning Corporation.
The financing for the Sundance recapitalization was provided by OneWest Bank, N.A.; Zions First National Bank; KeyBank National Association; and Bank of America Merrill Lynch.
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Brentwood Associates is a leading consumer-focused private equity investment firm with approximately $1.4 billion of capital under management, as of March 31, 2015, and a 30-year history of investing in leading middle-market growth companies. Brentwood focuses on investments in growing businesses where it is able to leverage its extensive experience in areas such as: specialty retail; branded consumer products; consumer services; direct marketing, including direct mail and e-commerce; education; health and wellness; and restaurants. Since 1984, Brentwood’s dedicated private equity team has invested in 47 portfolio companies with an aggregate transaction value of over $6 billion. With significant experience in both investing and brand building, Brentwood is a value-added partner with entrepreneurs and senior management teams building world-class companies. For more information about Brentwood, please visit www.brentwood.com.