Brown Jordan International, which is backed by Crescent Capital Group, said Monday it has acquired Tropitone Furniture. Financial terms weren’t announced. Pfingsten Partners, in 2007, led a buyout of Tropitone, a seller of outdoor casual furniture. The deal was financed by cash on hand as well as debt financing from AIG Investments and Bank of America Merrill Lynch. Moelis & Company was the financial advisor and debt placement agent to Brown Jordan. Intrepid Investment Bankers advised Tropitone.
ST. AUGUSTINE, Fla., Sept. 15, 2014 /PRNewswire/ — Brown Jordan International, Inc. (“Brown Jordan”) today announced that it has acquired the outstanding equity interests of Tropitone Furniture Co., Inc. (“Tropitone”). The transaction combines leading providers of outdoor casual furniture to the retail and hospitality markets into a company generating consolidated net sales of nearly $400 million. The combined company will be headquartered in St. Augustine, Florida and will maintain manufacturing, design and administrative operations in six states in the US as well as in Juarez, Mexico.
“We have long admired Tropitone’s capabilities in the hospitality and specialty retail sectors and are excited for the opportunity to leverage the strengths of our complementary customer relationships, product lines, and production and sourcing capabilities,” said Gene Moriarty, Brown Jordan’s President and Chief Executive Officer.
Cap Hendrix, Tropitone CEO, added, “The combination of Tropitone and Brown Jordan brings together the two industry leaders with strengths that are entirely complementary to one another. Under Gene Moriarty, the combination creates the foundation of a brilliant future for both companies.”
“The transaction represents a new stage of Brown Jordan’s evolution, solidifying its position as a leading casual furniture provider while positioning the company for further growth,” said Wayne Teetsel, Brown Jordan Board member and representative of its largest shareholder, Stonehill Capital Management. “Gene Moriarty led Brown Jordan through the financial crisis and has positioned the company to capitalize on market opportunities, such as this transaction, while retaining flexibility to pursue additional M&A initiatives.”
Board member Jason Breaux, representative of major shareholder Crescent Capital Group, added “Brown Jordan’s Board and investors are committed to supporting the company and its management team for the long term and see significant upside from this transaction and future opportunities.”
The transaction marks a year of celebration for both companies, as Brown Jordan’s flagship brand prepares for its 70th anniversary and Tropitone enjoys 60 years in business. Both companies will be presenting their 2015 lines at the International Casual Furnishings Association Casual Market at the Merchandise Mart in Chicago from September 16th to September 19th, 2014.
Moelis & Company acted as exclusive financial advisor and debt placement agent to Brown Jordan and Proskauer Rose and Jenner & Block provided legal counsel. The transaction was financed by cash on hand as well as debt financing from AIG Investments and Bank of America Merrill Lynch.
Prior to the transaction, Tropitone was owned by a group of investors led by Pfingsten Partners. Intrepid Investment Bankers acted as financial advisor to Tropitone and Paul Hastings provided legal counsel.
About Brown Jordan International
Brown Jordan International owns and operates a leading portfolio of companies serving the indoor and outdoor furniture industry. The company offers a wide range of furniture products and accessories under its own brands (including Brown Jordan, Tropitone, Winston, Texacraft, Charter, Wabash Valley and Urbanscape), licensed brands (including La-Z-Boy Outdoor) and customer brands.
Brown Jordan maintains industry‐leading design and product development capabilities comprised of highly experienced internal designers and independent designers. Products are sold to consumers as well as to hotels, resorts, multifamily housing managers, municipalities and other commercial customers.
The company is headquartered in St. Augustine, Florida and expects to generate nearly $400 million of pro forma revenue across its six business units in 2014.
SOURCE Brown Jordan