Catterton Partners
Encyclopedia
Catterton Partners is a private equity
firm specializing in leveraged buyout
s, recapitalizations
and growth capital
investments in middle-market companies. The firm has historically focused on several consumer focused industries particularly food and beverage; retail and restaurants and consumer products (both durable and non-durable).
The firm, founded in 1990 is based in Greenwich, Connecticut
and has more than 25 investment professionals.
In 1990, the founders of Catterton, Frank Vest and Michael Chu, partnered with former US Secretary of the Treasury William E. Simon
to form what was then known as Catterton-Simon Partners. Simon, the chairman of private investment company, Wesray Capital Corporation
, had gained prominence as a buyout investor in the early 1980s after the acquisition of Gibson Greetings
, a producer of greeting cards. The success of the Gibson Greetings investment and the subsequent buyout of Atlas Van Lines
were among the first deals to attract the attention of the wider media to the nascent boom in leveraged buyouts.
Since its inception, Catterton has raised seven private equity funds. In its first five years, Catterton focused exclusively buyouts, acquisitions, recapitalizations and turnarounds in the beverage industry. As the firm matured, its focus widened to encompass a larger array of consumer products companies and the firm has made substantial investments in retail and restaurant busiensses most notably with the acquisition of OSI Restaurant Partners (Outback Steakhouse
) (Restoration Hardware
) and most recently Noodles & Company
.
With its fourth fund, the firm dropped "Simon" from the name after severing direct investment ties with William E. Simon
whose firm William E. Simon & Sons had migrated primarily toward investments in late-stage venture capital
. Although Simon remained an investor in Catterton funds, he did not serve as an investment professional.
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firm specializing in leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
s, recapitalizations
Leveraged recapitalization
In corporate finance, a leveraged recapitalization is a change of the capital structure of a company, a substitution of equity for debt —e.g. by issuing bonds to raise money, and using that money to buy the company's stock or to pay dividends...
and growth capital
Growth capital
Growth capital is a type of private equity investment, most often a minority investment, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition without a change of control of the business.Companies...
investments in middle-market companies. The firm has historically focused on several consumer focused industries particularly food and beverage; retail and restaurants and consumer products (both durable and non-durable).
The firm, founded in 1990 is based in Greenwich, Connecticut
Greenwich, Connecticut
Greenwich is a town in Fairfield County, Connecticut, United States. As of the 2010 census, the town had a total population of 61,171. It is home to many hedge funds and other financial service companies. Greenwich is the southernmost and westernmost municipality in Connecticut and is 38+ minutes ...
and has more than 25 investment professionals.
History
The firm, founded in 1990 by was originally known as Catterton-Simon Partners.In 1990, the founders of Catterton, Frank Vest and Michael Chu, partnered with former US Secretary of the Treasury William E. Simon
William E. Simon
William Edward Simon was a businessman, a Secretary of Treasury of the U.S. for three years, and a philanthropist. He became the 63rd Secretary of the Treasury on May 8, 1974, during the Nixon administration. He was reappointed by President Ford and served until 1977. Outside of government, he was...
to form what was then known as Catterton-Simon Partners. Simon, the chairman of private investment company, Wesray Capital Corporation
Wesray Capital Corporation
Wesray Capital Corporation was an early private equity firm focussing on leveraged buyout investments. The firm was founded by former US Secretary of the Treasury William E...
, had gained prominence as a buyout investor in the early 1980s after the acquisition of Gibson Greetings
American Greetings
American Greetings Corporation, Inc. is the world's largest publicly-traded greeting card company. It is based in Brooklyn, Ohio and sells paper greeting cards, electronic greeting cards, party products , and electronic expressive content...
, a producer of greeting cards. The success of the Gibson Greetings investment and the subsequent buyout of Atlas Van Lines
Atlas Van Lines
Atlas Van Lines is a moving company formed in 1948 by a group of local transfer and storage firms. As an agent-owned company it is similar in form to a cooperative. It has about 500 agents worldwide , of which 75 own shares in Atlas World Group, which controls Atlas Van Lines and other related...
were among the first deals to attract the attention of the wider media to the nascent boom in leveraged buyouts.
Since its inception, Catterton has raised seven private equity funds. In its first five years, Catterton focused exclusively buyouts, acquisitions, recapitalizations and turnarounds in the beverage industry. As the firm matured, its focus widened to encompass a larger array of consumer products companies and the firm has made substantial investments in retail and restaurant busiensses most notably with the acquisition of OSI Restaurant Partners (Outback Steakhouse
Outback Steakhouse
Outback Steakhouse is an American casual dining restaurant chain based in Tampa, Florida with over 1200 locations in 22 countries throughout North and South America, Europe, Asia, and Australia. It was founded in February 1988 in Tampa by Bob Basham, Chris T...
) (Restoration Hardware
Restoration Hardware
Restoration Hardware is an American furniture chain of home furnishings, bath fixtures and bathware, functional and decorative hardware and related merchandise. The company defines its wares as classic and authentic American. Restoration Hardware, Inc. sells its merchandise offering through its...
) and most recently Noodles & Company
Noodles & Company
Noodles & Company is a chain of fast casual restaurants located in parts of the United States specializing in proprietary and regionally popular pasta bowls inspired from worldwide cuisine all made-to-order.The company is privately held, with Catterton Partners...
.
- Catterton-Simon Partners I - $11.25 million (1990)
- Catterton-Simon Partners II - $50 million (1993)
- Catterton-Simon Partners III - $100 million (1996)
- Catterton Partners IV - $400 million (2000)
- Catterton Partners V - $650 million (2004)
- Catterton Partners VI - $1.0 billion (2006)
- Catterton Growth Partners - $300 million, focused on growth capitalGrowth capitalGrowth capital is a type of private equity investment, most often a minority investment, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition without a change of control of the business.Companies...
(2008)
With its fourth fund, the firm dropped "Simon" from the name after severing direct investment ties with William E. Simon
William E. Simon
William Edward Simon was a businessman, a Secretary of Treasury of the U.S. for three years, and a philanthropist. He became the 63rd Secretary of the Treasury on May 8, 1974, during the Nixon administration. He was reappointed by President Ford and served until 1977. Outside of government, he was...
whose firm William E. Simon & Sons had migrated primarily toward investments in late-stage venture capital
Venture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
. Although Simon remained an investor in Catterton funds, he did not serve as an investment professional.
Current Investments
The following are some of Catterton's current and former portfolio companies (as of spring-2011):- Noodles & CompanyNoodles & CompanyNoodles & Company is a chain of fast casual restaurants located in parts of the United States specializing in proprietary and regionally popular pasta bowls inspired from worldwide cuisine all made-to-order.The company is privately held, with Catterton Partners...
http://noodles.com
- O.N.E. Coconut Waterhttp://www.onedrinks.com
- OSI Restaurant Partners (Outback SteakhouseOutback SteakhouseOutback Steakhouse is an American casual dining restaurant chain based in Tampa, Florida with over 1200 locations in 22 countries throughout North and South America, Europe, Asia, and Australia. It was founded in February 1988 in Tampa by Bob Basham, Chris T...
)
- Restoration HardwareRestoration HardwareRestoration Hardware is an American furniture chain of home furnishings, bath fixtures and bathware, functional and decorative hardware and related merchandise. The company defines its wares as classic and authentic American. Restoration Hardware, Inc. sells its merchandise offering through its...
- Farley's & Sathers Candy Company, Inc.Farley's & Sathers Candy Company, Inc.The confectionery business segment is made up of many small companies, often with intertwined relationships and histories. Farley's & Sathers Candy Company, Inc. was created as an umbrella company to roll-up many small companies, brands and products under a common management team.Catterton...
- Breyers Yogurt CompanyBreyersBreyers is a brand of frozen dessert and ice cream owned by Unilever . They have a large plant in the town of Framingham, Massachusetts, outside Boston....
- Culinary Concepts by Jean-GeorgesJean-GeorgesJean Georges is a restaurant at 1 Central Park West on the Lobby Level of the Trump International Hotel and Tower, Manhattan, named after its owner Jean-Georges Vongerichten. Jean Georges remains one of the few restaurants in the city awarded four stars by The New York Times...
Former Investments
- Build-A-Bear WorkshopBuild-A-Bear WorkshopBuild-A-Bear Workshop is an American retailer headquartered in St. Louis, Missouri that sells teddy bears and other stuffed animals. Customers go through an interactive process in which the stuffed animal of their choice is assembled and customized during their visit to the store, and is the...
- P. F. Chang's China BistroP. F. Chang's China Bistro'P. F. Chang's China Bistro, Inc. is an American restaurant chain with headquarters in Scottsdale, Arizona.The chain was founded in Scottsdale, Arizona in 1993 by Paul Fleming and Philip Chiang. The restaurants serve American Chinese cuisine from a menu originally conceived and planned by chef...
- Kettle FoodsKettle FoodsKettle Foods is an international manufacturer of potato chips, tortilla chips, and nut butters based in Salem, Oregon, United States, with a European and Middle East headquarters in Norwich, United Kingdom. As of 2006 they were the largest natural potato chip brand in the U.S...
- Frédéric FekkaiFrédéric FekkaiFrédéric Fekkai is a French celebrity hairstylist.-Early life:Fekkai was born in Aix-en-Provence, France, and grew up in Aix-en-Provence and Paris...
- OdwallaOdwallaOdwalla Inc. is an American food product company that sells fruit juice, smoothies and food bars. It was founded in Santa Cruz, California in 1980 and is headquartered in Half Moon Bay, California....
- Caribou CoffeeCaribou CoffeeCaribou Coffee Company is a specialty coffee and espresso retailer, the second largest in the United States after Starbucks. Caribou sells coffee, tea, and bakery goods in 415 company-owned coffeehouses in 16 states and the District of Columbia, as well as 126 franchise locations worldwide.-...
- JardenJardenJarden Corporation, is an America conglomerate of many well-known consumer product brands in the areas of kitchen electronics, kitchen cookware, kitchen tools, gaming, arts & crafts, home storage, and clothing. In 2006, it was ranked #585 on the Fortune 1000...
- Wellness Pet Food
- HalstonHalstonRoy Halston Frowick, also known as Halston was a clothing designer of the 1970s. His long dresses or copies of his style were popular fashion wear in mid-1970s discotheques.-Early life and career:...