In late 2008, CCMP Capital was hired by J.P. Morgan to manage the legacy portfolio of Bear Growth Capital Partners. Today, CCMP announced that it had acquired one of those portfolio companies: Francesca’s Collections Inc., a Houston-based women’s fashion retailer that had sold a minority stake to BGCP for around $57 million three years ago.
The all-equity deal was valued at between $200 million and $400 million, with a percentage of the proceeds being used to buy out BGCP and certain company founders.
“We could have put debt on this, but chose not to,” says CCMP chairman Greg Brenneman, who will join Francesca’s board of directors. “The most natural exit, eventually, would be an IPO, because Francesca’s numbers are better than anything comparable on the public markets.”