Leonard Green, TPG Recap Savers

Leonard Green & Partners and TPG will recapitalize privately-held thrift store chain Savers Inc., the company announced Thursday. Terms were not released, though the company said the deal would be completed in July. Thomas Ellison, son of the Company’s founder, will have an equal ownership position to the private equity firms and will continue in his role as Chairman.



Savers, Inc. (“Savers” or the “Company”), the largest privately-held thrift store chain in North America, today announced that definitive agreements have been executed with affiliates of leading private equity firms Leonard Green & Partners, L.P. (“LGP”) and TPG to recapitalize the company in partnership with Savers’ Chairman Thomas Ellison and the management team. The new alliances are a move to further position Savers for success in the resale business and ensure a superior customer experience with continued growth in store operations, non-profit partner development and new store expansion. The transaction is expected to be completed in July.


The Company’s recapitalization follows a very successful six-year partnership with investment firm Freeman Spogli & Co. Over that time, Savers demonstrated exceptional company performance and enjoyed strong resale market conditions that led to annual revenues exceeding $1 billion. Savers is expected to exceed 300 total stores this year and is poised to continue its recent pace of rapid expansion through organic and acquisition growth over the next five years.


“LGP and TPG are among the most experienced retail investors in the industry with strong portfolio companies who have demonstrated excellent results,” said Ken Alterman, President and CEO of Savers. “We are pleased to have chosen like-minded partners who can continue to build on Savers’ history of success in supporting local communities and providing an exciting and value-driven shopping experience for our customers.”


For almost 60 years, Savers and its vast network of non-profit partners have provided a platform to connect communities by building a bridge between donors with surplus clothing and housewares and shoppers who give those items a second life. By purchasing and reselling gently used merchandise in a department store environment, Savers provides a new source of income to more than 140 non-profit organizations; low-cost and high quality goods to consumers; and benefits to the environment by facilitating the recycling and reuse of used goods.


“Savers is a leader in the resale industry with strong brand equity, a proven business model and significant potential for global expansion,” said John Danhakl, Managing Partner of LGP. “We’re excited to partner with Savers’ talented management team and look forward to supporting the next phase of the Company’s growth and profitability.”


Carrie Wheeler, TPG Partner, said, “Since its founding, Savers has grown consistently and built a strong and loyal customer base that is seeking quality merchandise at reasonable prices. We believe the Company is poised for significant additional expansion and are pleased to partner with Thomas Ellison and Savers’ management team.”


Thomas Ellison, son of the Company’s founder and a 35-year veteran of Savers, will have an equal ownership position to LGP and TPG in the Company and will continue in his role as Chairman. Ken Alterman will continue to lead the organization as President and CEO.


Moelis & Company and Barclays acted as financial advisors to Savers and Bingham McCutchen LLP served as its legal counsel through the process. Savers also engaged Goldman Sachs Lending Partners LLC, Barclays Bank PLC, Credit Suisse Securities (USA) LLC, and Deutsche Bank Securities Inc. to act as the joint bookrunners and joint lead arrangers of the senior secured credit facilities. Crescent Capital Group will be the purchaser of the private unsecured notes.


Latham & Watkins LLP served as legal counsel to LGP. Cleary Gottlieb Steen & Hamilton LLP served as legal counsel to TPG.


About Savers, Inc.Savers, Inc. is a privately-held for-profit global thrift retailer offering clothing and accessories for men, women and children and household goods under the Savers, Value Village, Village des Valeurs, Unique Thrift Store and Valu Thrift Store brands. Through its unique business model of purchasing, reselling and recycling secondhand merchandise, the Savers family of thrift stores benefits more than 140 non-profit organizations, gives local consumers a smart way to shop and saves more than 600 million pounds of quality used goods from landfills each year. Savers, Inc. has paid more than $1.4 billion to its non-profit partners over the last 10 years, turning otherwise unused items into sustainable funding that supports vital community programs and services. Founded in 1954, Savers operates nearly 290 locations and has more than 17,000 employees across the United States, Canada and Australia. For more information, please visit www.savers.com .


About Leonard Green & Partners, L.P.Leonard Green & Partners, L.P. is one of the nation’s preeminent private equity firms with over $15 billion of private equity capital raised since inception. Founded in 1989, the firm has invested in 59 companies with aggregate value of $51.5 billion in the form of traditional buyouts, going-private transactions, recapitalizations, growth capital investments, corporate carve-outs and selective public equity and debt positions. Based in Los Angeles, California, LGP invests in established companies that are leaders in their markets. For more information, please visit www.leonardgreen.com .


About TPGTPG is a leading global private investment firm founded in 1992 with $51.5 billion of assets under management and offices in Fort Worth, San Francisco, Beijing, Chongqing, Hong Kong, Houston, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, Paris, Sao Paulo, Shanghai, Singapore and Tokyo. TPG has extensive experience with global public and private investments executed through leveraged buyouts, recapitalizations, spinouts, growth investments, joint ventures and restructurings.