Retailers continue to focus on e-commerce as they have been struggling to keep brick-and–mortar stores afloat amid increasing online competition. Children’s apparel retailer Hanna Andersson LLC is another example.
L Catterton acquired Hanna Andersson from Sun Capital Partners Inc. Financial terms of the deal were not disclosed. Portland, Oregon-based Hanna Andersson, founded in 1983, is known for selling mostly Swedish-inspired children’s clothes. The target also sells sheets, blankets, backpacks and women’s apparel. Sun Capital bought the target in 2008.
Under Sun Capital’s ownership, Hanna Andersson’s store count grew from 27 to 65 and also expanded its e-commerce platform. According to L Catterton, Hanna Anderson has seen double-digital annual revenue growth since 2010. Hanna Andersson CEO Adam Stone will continue to lead the company.
L Catterton was formed earlier in 2016 when French luxury goods maker LVMH Moet Hennessy Louis Vuitton SE combined its private equity group, known as L Capital, and its real estate investment unit with consumer-focused private equity firm Catterton. The firm is based in Greenwich, Connecticut and London and has offices across Europe, Asia and Latin America.
Retailers have been focusing on growing online and less on traditional stores. Plus-size fashion retailer Ashley Stewart Inc. turned its attention to e-commerce, staged a comeback and attracted a new majority investor in Invus Group LLC. In February 2016, DSW Inc. (NYSE: DSW), the footwear and accessories retailer, announced it was buying Ebuys Inc. to expand online.
Other companies, such as American Apparel, Abercrombie & Fitch Co. (NYSE: AEO), Sears Holdings Corp. (Nasdaq; SHLD) and Wet Seal, have been closing stores, selling assets and going bankrupt. American Apparel filed for bankruptcy in 2015 and Sports Authority filed earlier in 2016. More bankruptcies in the retail sector are expected in 2016.
Harris Williams & Co. and Financo LLC advised Hanna Andersson, which was represented by Kirkland & Ellis.