Littlejohn & Co. LLC has agreed to purchase Brown Jordan International Inc., a maker of indoor and outdoor furniture, for an undisclosed amount. The deal is expected to close in Jan. 2017.
Brown Jordan, headquartered in St. Augustine, Florida, was founded in 1945 as a manufacturer of indoor and outdoor furnishings primarily used for the commercial industries, including: hospitality, leisure, multi-family, corporate, and restaurants. In additional to the commercial industries, Brown Jordan selectively services the consumer market using the Brown Jordan, Charter, Texacraft, and Tropitone brands. Brown Jordan distributes a variety of furniture products such as lounge chairs, bar stools, chaises, love seats and sectionals, benches, and an array of tables. The target generates approximately $300 million in sales.
Littlejohn is an investment advisory firm that backs middle-market companies seeking a change in capital structure, strategy, operations or growth. The Greenwich, Connecticut-based firm is backing Brown Jordan from Littlejohn Fund V, the firm's fifth fund with nearly $2 billion in capital commitments. In 2015, Littlejohn launched a credit management business, called Wellfleet Capital Partners, and now has more than $4 billion in assets under management. The firm raised a $406 million collateralized loan obligation fund (CLO), called Wellfleet CLO 2016-2, in Nov. 2016.
Recent deals involving manufacturers for the furniture and bedding industries include: Quad-C Management’s acquisition of Stanton Carpet Corp. from Norwest Equity Partners; Ardian's agreement to buy SLV, a maker of residential and commercial light fixtures; Arsenal Capital Partners’ purchase of mattress maker Elite Foam Inc.; Hook Furniture Corp.’s (Nasdaq: HOFT) deal to buy Home Meridian International Inc. for $100 million; and Mattress Firm Holding Corp.’s (Nasdaq: MFRM) acquisition of Sleepy’s for $780 million, bringing together the largest U.S. specialty mattress retailers.
Debt financing commitments in support of the Brown Jordan acquisition have been provided by Goldman Sachs Group Inc. (NYSE: GS) and Société Générale. Moelis & Co. (NYSE: MC) served as exclusive financial adviser to Brown Jordan.