TZP invests in Itzy Ritzy, doubles down on stake in mom-focused brands

The PE firm acquires a control share in direct-to-consumer diaper bag company.

After buying maternity apparel brand Kindred Bravely, TZP Group moved quickly to invest in another mom-focused company specializing in travel bags for infants.

The New York-headquartered firm closed a separate platform deal for Quintessential Tots, operating as Itzy Ritzy, in the subsequent week, deploying up to $30 million in equity from its $250 million Small Cap Partners II fund. PineBridge Investments provided debt financing.

Although both Kindred Bravely and Itzy Ritzy serve the same consumer segment, the pair of back-to-back deals were “not a targeted approach,” said Erin Edwards, who co-led the transaction for TZP.

Founded in 2014, Itzy Ritzy is known for its baby travel bags. Unlike Kindred Bravely, the Naperville, Illinois-headquartered brand follows an omni-channel approach and sells at mass retail stores such as Target, Kohl’s and Nordstrom, along with e-commerce sites like Amazon and its own website.

“We are interested in high-growth business,” Edwards said, referring to the company’s strong foundation across multiple retail channels.

Covid-19 had a minimal impact on the business thanks to its omni-channel approach, as its partner stores were deemed essential and online delivery continued, according to Edwards.

TZP plans to apply its experience from driving growth at other direct-to-consumer brands, Rodney Eshelman, partner and co-deal team lead said. The aim is to get into new product categories, ramp up hiring and develop the brand’s infrastructure by upgrading and refining systems, he said.

“We think there’s a lot of white space opportunities,” Edwards said. The sub-$10 million EBITDA business added toys to its collection last year, in addition to teething rings and pacifiers.

Like the husband-wife duo at Oceanside, California-based Kindred Bravely, Itzy Ritzy was founded by young parents Kelly and Brian Douglas. Although this is the first institutional investment for the company, a family office did have a minority stake in the business, which has since been liquidated, Eshelman said.

The Douglas family, advised by mid-market investment bank Brown Gibbons Lang, ran a process in the fourth quarter but engaged with TZP in September.

An LOI was signed in early March, following the original indication of interest in the December timeframe, TZP said.