Swander Pace Backs Baby Product Maker Halo, Following Fund Close

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Aden and Anais, backed by Swander Pace Capital, has acquired Halo Innovations Inc. for the target’s complementary, “healthy” baby products. Financial terms of the deal were undisclosed.

Halo, based in Minneapolis, manufactures and distributes sleeping environment products for children and adults. Through online and retail distribution, the target sells crib and cradle sets, baby pajamas, blankets, swaddles, air purification systems and gift sets. Halo was founded by Bill Schmid and his wife Cathy who lost their first born child to sudden infant death syndrome. Since the incident, the target has dedicated its mission to help babies sleep safely.

Aden and Anais, a portfolio company of SPC, also makes soft goods for infants and toddlers. As part of the deal, the newly-combined company will market its products under both the Halo and Aden and Anais brands. Altogether, the new products are now available in more than 15,000 retail stores across the U.S. and internationally, including stores such as: Target Corp. (NYSE: TGT), BuyBuy Bay, Babies R Us, Wal-Mart Stores Inc. (NYSE: WMT) and Amazon.com Inc. (Nasdaq: AMZN).

SPC is a private equity firm that has invested in more than 45 companies since its inception in 1996. The firm targets companies with up to $500 million in revenue. Swander Pace has offices in San Francisco, New Jersey and Ontario. SPC, led by managing directors Andrew Richards, Mark Poff, Mo Stout, Corby Reese, Rob DesMarais and Heather Smith Thorne, closed its sixth fund in Sept. 2016 to focus on the middle-market consumer sector. The firm also purchased vitamin retailer Swanson Health Products in 2016.

Deals for infant products have begun to gather some interest from buyers. Previous acquisitions of businesses related to the baby industry include: Goodbaby International Holdings Ltd’s completed purchase of car seat maker Evenflo; Providence Apparel Inc.’s acquisition of Gerber Childrenswear LLC from Sun Capital Partners Inc.; and The Riverside Co.’s completed purchase of NJoy Baby SLfor the target’s reversible umbrella stroller.

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