Marwit Capital Announces Sale of Boot Barn
Newport Beach, CA – December 13, 2011 – Marwit Capital Partners II, L.P. announced today that it has sold its portfolio company, Boot Barn, representing the first exit for Marwit Capital Partners II, L.P. Based in Irvine, CA, Boot Barn is the largest specialty retailer of western and work footwear and apparel in the U.S. The Company operates 85 retail stores in California, Nevada, Arizona, Oregon, New Mexico, Wyoming, Montana, and Colorado as well as its online store, www.bootbarn.com.
Marwit acquired Boot Barn in September 2007 in partnership with CEO Patrick Meany. Marwit orchestrated three strategic add-on acquisitions during the height of the credit crisis in 2008, adding 45 stores in the process, facilitated the opening of 13 profitable new locations, backed the implementation of a new internet platform and ecommerce strategy, expanded the retail store footprint from three to eight states, and made substantial new investments in facilities, key employees and systems.
Marwit and management’s growth initiatives helped drive impressive results at Boot Barn, which had revenue growth of 166% and EBITDA growth of 250% during the firm’s four-year hold period. During this time, Boot Barn grew to become the undisputed leader in the retail western and work wear industry.
“The management team at Boot Barn, led by CEO Patrick Meany, executed the growth plan and Marwit’s vision for this business virtually flawlessly during our tenure as owners, and helped Marwit drive a superior investment result. This was particularly noteworthy considering it was accomplished during a challenging economic period,” said Chris Britt, Marwit Managing Partner. Added Marwit Partner David Browne, “Boot Barn is very well positioned for continued success and its next leg of growth. We are extremely excited for Boot Barn and its management team as it moves forward with excellent new partners.”
Boot Barn has been acquired by Freeman Spogli & Co., a Los Angeles, CA based private equity firm with a preeminent reputation for successfully investing in and partnering with management in consumer-related and distribution companies in the U.S.
Working with Messrs. Britt and Browne on the transaction for Marwit were Vice President Carol Farrell and Associate Matt Sotelo. At Boot Barn, in addition to Patrick Meany, particularly noteworthy contributions were made by CFO Paul Iacono, whom Marwit recruited to Boot Barn in 2009.
Harris Williams & Co. provided sell-side advisory services on the transaction, and Paul Hastings LLP provided legal counsel.
About Marwit Capital
Marwit is a private investment firm that partners with management teams to build industry leading companies in the lower middle market. Founded in 1962, Marwit is one of the oldest private equity firms in the Western U.S. Since 1994, the firm has completed over 50 buyouts, recapitalizations and growth equity investments. Marwit invests in lower middle market businesses that have revenues of $20 to $200 million, EBITDA of $4 to $20 million, and enterprise values generally less than $100 million. In all instances, Marwit partners with experienced CEO Partners and management teams that invest alongside the Fund, and actively collaborates with them to create value. Marwit generally invests $10 to $20 million of equity capital per business, in one or a series of investments, and has invested more than $250 million since 1995. MCP II completed its final closing in late 2007 at $184 million of committed capital.