Manchester, Conn. — Bob’s Discount Furniture has signed a definitive agreement to sell a majority stake of its business to Bain Capital for an undisclosed amount. Bob's management team will continue to own a "significant stake" after the deal and will remain involved in operations, according to the company, which has been majority owned by private equity firm KarpReilly/Apax for the past nine years.
Bob’s Discount Furniture operates 47 stores in the Northeast and mid-Atlantic. It will enter the Philadelphia market in February 2014.
“We are thrilled to partner with Bain Capital, a firm that has been investing in great retail businesses and consumer brands for decades,” said Ted English, CEO of Bob’s Discount Furniture, who will continue to lead the company. “Bain Capital brings the experience and resources we need to support our continued expansion to serve more customers in more places, and to provide opportunities for advancement for our people."
The A Merrill Lynch is serving as financial advisor, and Ropes & Gray LLP is acting as legal counsel, to Bob's Discount Furniture. Kirkland & Ellis LLP is serving as legal counsel, and PwC LLP is serving as accounting advisor, to Bain Capital. Financing for the transaction is being provided by RBC and UBS. The transaction is expected to close during the first quarter of 2014 and details were not disclosed.