Capmark Financial Group, which is backed by Centerbridge Partners, announced that it has agreed to acquire Bluestem Brands, an online retailer of name-brand and private label general merchandise. The deal, expected to close in 4Q 2014, is for approximately $565 million in cash. Credit Suisse and Jefferies will lead a $300 million term debt facility to Bluestem, which upon closing will have a new $80 million asset-based lending facility led by U.S. Bank National Association. For the 52-week period ended August 1, Bluestem had sales of $943 million, an increase of 25.4% over the same period ended August 2, 2013.
Bluestem's site serves low-to-middle income U.S. consumers nationwide. It operates through its Fingerhut and Gettington.com retailing brands, as well as PayCheck Direct, an employee purchase program. At the time of the acquisition, the company stood in the portfolios of firms including Bain Capital Ventures, Battery Ventures and Brookside Capital, among others. It raised its initial VC round of $35 million at a valuation of $84 million back in 2004; in 2012, it withdrew an attempt at an IPO.