Bain acquires furniture retailer
Private equity firm Bain Capital concluded 2013 with the acquisition of Bob’s Discount Furniture, an operator of 47 stores in the Northeast that is intent on expansion.
Bain acquired a majority ownership position in the Manchester, Conn.-based company and said senior management will continue to own a significant stake. Current CEO Ted English will continue to lead the company whose first order of business for 2014 is entry into the Philadelphia market.
“We are thrilled to partner with Bain Capital, a firm that has been investing in great retail businesses and consumer brands for decades,” English said. “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."
Private equity ownership is familiar territory for Bob’s and English as the furniture chain has been majority owned for the past nine years by private equity firm KarpReilly/Apax.
Founded in 1991, Bob’s carved out a position in the market by offering customers the highest-value home furnishings at the lowest possible prices. It currently operates 47 stores throughout New England, New Jersey, New York, Maryland and Virginia and is the nation’s 16th largest furniture retailers.
Bain Capital has a history of investments in a variety of retail and consumer businesses including Michaels Stores, Dunkin’ Brands Group, Bombardier Recreational Products, Outback Steakhouse, Burlington Stores, Dollarama, and Samsonite International.
"We are excited to partner with Ted English and the great management team at Bob’s Discount Furniture to support continued growth in this dynamic business,” said Tricia Patrick, a principal at Bain Capital. “We believe the company’s quality furniture at deep value fills an important need in the market today, and along with the authenticity of the Bob’s brand, should drive sustainable growth for years to come. We look forward to supporting the management team in executing their plan to grow and offer more customers the opportunity to shop at Bob’s Discount Furniture."
A few 2014 tech predictions
An IPO from payment processor Square and the widespread reality of same day delivery are a few of the technology-oriented predictions, offered by Fortune’s San Francisco-based writer JP Mangalindan.
Following Twitter’s successful IPO in 2013, founder Jack Dorsey is likely to give investors the opportunity to own shares in his other start-up, credit card processing company Square, according to Mangalindan. He also believes companies such as Amazon and eBay will make same day delivery more broadly available and appeal to shoppers who demand more instant gratification.
Click here for a more detailed look at these and other predictions.