PE Tying the Knot with Specialty Retailers Across the U.S.
August 29, 2012
David's BridalWhite by Vera Wang
Clayton, Dubilier & Rice has agreed to acquire David's Bridal from Leonard Green & Partners in a transaction that values the company at about $1.05 billion. Debt financing for the deal is being provided by Bank of America Merrill Lynch, Barclays, Goldman Sachs and Morgan Stanley. David's Bridal is a specialty retailer of bridal gown and wedding-related apparel and accessories, and its designer offerings include the brand White by Vera Wang, an exclusive partnership between the company and Vera Wang. Leonard Green acquired David's Bridal in 2007 and will continue to hold a minority stake after the sale to CD&R is completed.
Private equity investors have often been seen tying the knot with specialty retailers like David's Bridal. In fact, PE investors have invested in 191 U.S. companies involved in the Specialty Retail industry since the beginning of 2007, according to the PitchBook Platform. Those specialty retailers ringing up PE capital have been pretty well spread out across the country. The West Coast, Midwest and Northeast are each home to about 20% of the deals since 2007, and the South is right on their heels with a 17% share.