Sun Capital Moves Kellwood Assets Around

Kellwood Co., an apparel company owned by Sun Capital Partners, has sold a pair of non-core brands — Gerber Childrenswear LLC and Hanna Andersson LLC – to a Sun Capital affiliate called Childrenswear LLC. The deal was valued at $179 million.




Kellwood Company (“Kellwood”) today announced that it has completed the sale of two of its non-core business units, Gerber Childrenswear LLC (“GC LLC”) and Hanna Andersson LLC (“Hanna Andersson”), to Childrenswear, LLC (“Childrenswear”), an affiliate of Sun Capital Partners, Inc. (“Sun Capital”) for $179 million. Both GC LLC and Hanna Andersson will operate as independent businesses within the Childrenswear entity. The sale of GC LLC and Hanna Andersson was made pursuant to a purchase and sale agreement containing customary representations, warranties, indemnities and covenants. Kellwood expects to use approximately $145 million of the sale proceeds to pay down in full all of its borrowings under its revolving credit agreement, with the remainder being retained as cash to be used for general corporate purposes. Kellwood is an affiliated portfolio company of Sun Capital, a leading private investment firm specializing in leveraged buyouts and investments in market-leading companies.


GC LLC and Hanna Andersson collectively generated $267 million and $218 million in net sales for fiscal 2007 and the first nine months of fiscal 2008, respectively, representing 20% and 24% of Kellwood’s  consolidated net sales for those periods, and $86 million and $71 million in gross profit for fiscal 2007 and the first nine months of fiscal 2008, respectively, representing 23% and 32% of Kellwood’s consolidated gross profit for those periods.  After giving effect to the sale, Kellwood’s pro forma net sales for fiscal 2007 and the first nine months of fiscal 2008 were $1.073 billion and $677 million, respectively, and its pro forma gross profit for those periods were $287 million and $151 million, respectively.


“The sale of Gerber and Hanna Andersson is consistent with our strategy to focus Kellwood on leveraging our core fashion and apparel design and development competencies on our women’s businesses, which include our juniors, contemporary and mainstream women’s sportswear brands,” stated Michael W. Kramer, President and CEO of Kellwood Company.


About Kellwood Company


Kellwood Company (“Kellwood”) is a leading women’s apparel marketer. Specializing in branded products, the Company markets to all channels of distribution with products tailored to each specific channel including: Baby Phat®, Phat Farm®, Vince®, Sag Harbor®, Briggs New York®, My Michelle®, and Jolt®, as well as licensed brands XOXO® and David Meister®. For more information, visit


About Gerber Childrenswear LLC


Gerber Childrenswear LLC (“GC LLC”)  is a leading marketer of children’s apparel and related products, offered under its flagship licensed brand, Gerber®, which includes underwear, sleepwear, playwear, swimwear, bed and bath products, cloth diapers, and bibs. In addition, GC LLC owns the trademark for the Onesies® brand one-piece underwear and the licenses for Jockey® Kids (boys and girls – newborn to age 13 for panties, briefs, boxers and t-shirts) and Lamaze® (infantswear, bedding and accessories). GC LLC distributes to specialty stores, mass and national chains and enjoys 100% brand awareness in the U.S. for the Gerber® brand. For more information, please visit,



About Hanna Andersson LLC


Serving customers for over twenty years, Hanna Andersson LLC (“Hanna Andersson”), is a leading multi-channel retailer of lifestyle branded apparel for children and their families.  Swedish inspired and made of the finest quality fabrics, Hanna Andersson offers a complete line of products for children, including its iconic long johns, dresses, outerwear and coordinated accessories. Hanna Andersson operates 23 premium retail stores and six outlet stores, as well as an internet site and a catalogue (considered the #1 standalone children’s apparel catalogue in the United States). For more information, please visit


About Sun Capital Partners, Inc.


Sun Capital Partners, Inc. is a leading private investment firm focused on leveraged buyouts, equity, debt, and other investments in market-leading companies that can benefit from its in-house operating professionals and experience. Sun Capital affiliates have invested in and managed 200 companies worldwide with combined sales in excess of $40.0 billion since Sun Capital’s inception in 1995. Sun Capital has offices in Boca Raton, Los Angeles, and New York, as well as affiliates with offices in London, Paris, Frankfurt, Tokyo, and Shenzhen. For more information, please visit: