Sycamore Partners Explained

Sycamore Partners
Type:Private
Founders:Stefan Kaluzny
Peter Morrow
Key People:Stefan Kaluzny
Peter Morrow
Location:Solow Building
Location City:New York City, New York
Location Country:U.S.
Industry:Private equity
Products:Leveraged buyouts, special situations, distressed buyouts
Num Employees:11–50[1]

Sycamore Partners is an American private equity firm based in New York specializing in retail and consumer investments. The firm has approximately $10 billion in aggregate committed capital.[2]

History

Founding

Sycamore Partners was founded in 2011 by Stefan Kaluzny and Peter Morrow.[3] Before Sycamore, Kaluzny was a managing partner at Golden Gate Capital and was employed since the firm's inception. Prior to joining Golden Gate, he co-founded Delray Farms, Inc. and also served as its chief executive officer. Kaluzny received a BA from Yale University and an MBA from Harvard Business School. Morrow served as a Principal at Golden Gate before co-founding Sycamore. Peter Morrow received a BA from Stanford University and an MBA from Stanford Graduate School of Business.

Holdings

Current

Former

Recent investments

In 2011, Sycamore acquired a 51% stake in MGF Sourcing, finally completing the total takeover in 2015.[7]

In 2012, the firm acquired Talbots for $391 million.[8]

In 2013, Sycamore acquired Hot Topic and Torrid for $600 million.[9]

In 2014, the firm acquired Coldwater Creek.[10] The firm also acquired Jones New York in 2014, for $2.2 billion,[11] which was then sold to Authentic Brands Group in 2015.[12] Kurt Geiger[13] which was then sold to Cinven in 2015.[14] Sycamore also sold the Stuart Weitzman business to Coach, Inc. in 2015 for $574 million.[15]

In 2015, the firm acquired Belk, Inc for $3 billion,[16] and EMP Merchandising,[17] whilst divesting from Pathlight Capital.[18]

In 2017, Sycamore's Nine West Holdings acquired Kasper.[19] and Sycamore Partners purchased NBG Home.[20] The firm then went onto win the bid for The Limited, bidding $26.8 million.[21] In June 2017, Reuters reported that Staples Inc. had agreed to sell itself for $6.9 billion.[22] Sycamore also sold over 300 Dollar Express stores to rival, Dollar General.[23]

In July 2020, it was announced that Sycamore Partners had made a $1.75 billion offer to acquire department store chain and competitor JCPenney out of bankruptcy, and would rebrand 250 JCPenney stores to the Belk name, to help the chain compete directly with Macy's. Under the plan, the remaining JCPenney stores will be liquidated.[24] The plan was not selected.[25]

In January 2021, Sycamore Partners bought Azamara Cruises from the Royal Caribbean Group.[26]

On March 16, 2022, it was announced the Sycamore and Hudson's Bay Company are preparing bids to buy Kohl's.[27]

On November 3, 2022, Lowe's announced that it has entered into a definitive agreement to sell its Canadian retail business to Sycamore Partners.[28]

On September 28, 2023, Sycamore signed an agreement to acquire Fort Myers, Florida–based Women's apparel retailer Chico's FAS for $938.1 million. As of July 29, 2023, Chico's runs 1,258 U.S. stores, and sells through 58 franchise locations in Mexico and two domestic airport franchises. [29]

Notes and References

  1. Web site: LinkedIn . Sycamore Partners . March 16, 2023.
  2. Web site: Sycamore to recapitalize and retain control of retailer Belk. PE Hub. January 26, 2021.
  3. Web site: Why the Wall Street dealmaker who bought Charlotte's Belk is betting on retail. The Charlotte Observer . May 22, 2017.
  4. Web site: Newell Brands Completes Divestitures of Pure Fishing and Jostens. 2018-11-25.
  5. News: Investments. Sycamore Partners. May 15, 2018.
  6. Web site: Done Deal: Ascena Retail sells Ann Taylor, other brands to Sycamore. chainstoreage.com. en. 2021-03-04.
  7. Web site: OUR COMPANY – MGF Sourcing. www.mgfsourcing.com. en-US. 2017-06-29.
  8. Web site: Sycamore Partners Completes Acquisition Of Talbots. Partners. Sycamore. www.prnewswire.com. en. 2017-06-29.
  9. Web site: Sycamore Partners to Buy Hot Topic for $600 Million. Merced. Michael J. de la. March 7, 2013. DealBook. 2017-06-29.
  10. Web site: Sycamore Partners Acquires Coldwater Creek Intellectual Property. Partners. Sycamore. www.prnewswire.com. en. 2017-06-29.
  11. Web site: Sycamore Partners Completes Acquisition Of The Jones Group. Partners. Sycamore. www.prnewswire.com. en. 2017-06-29.
  12. News: Authentic Brands Acquires Jones New York Apparel Brand From Sycamore Partners. Collings. Richard. 2015-04-24. TheStreet. 2017-06-29. en-US.
  13. Web site: Private Equity Retail Sycamore Partners. Torrid. Sycamore Partners, Private equity, Sycamore private equity, Retail investment, Retail private equity, Consumer investment, Consumer private equity, Sycamore investment, Retail capital, Consumer capital, Stefan Kaluzny, Peter Morrow, Belk, Coldwater Creek, Dollar Express, EMP Merchandising, Hot Topic, Kasper, MGF Sourcing, Nine West, Talbots. www.sycamorepartners.com. en. 2017-06-29.
  14. News: Kurt Geiger, British Footwear Maker, in Another Private Equity Deal. Bray. Chad. 2015-12-14. The New York Times. 2017-06-29. en-US. 0362-4331.
  15. Web site: Coach to pay $574 million for shoemaker Stuart Weitzman. Kell. John. Fortune. 2017-06-29.
  16. News: Sycamore Partners completes purchase of Belk. charlotteobserver. 2017-06-29. en.
  17. Web site: Sycamore Partners Acquires E.M.P. Merchandising, Germany-Based Multi-Channel Retailer. Partners. Sycamore. www.prnewswire.com. en. 2017-06-29.
  18. Web site: Private Equity Retail Sycamore Partners. Torrid. Sycamore Partners, Private equity, Sycamore private equity, Retail investment, Retail private equity, Consumer investment, Consumer private equity, Sycamore investment, Retail capital, Consumer capital, Stefan Kaluzny, Peter Morrow, Belk, Coldwater Creek, Dollar Express, EMP Merchandising, Hot Topic, Kasper, MGF Sourcing, Nine West, Talbots. sycamorepartners.com. en. 2017-06-29.
  19. Web site: Nine West Holdings to Acquire the Kasper Group. Inc.. Nine West Holdings. www.prnewswire.com. en. 2017-06-29.
  20. Web site: Sycamore Partners Acquires NBG Home. Partners. Sycamore. www.prnewswire.com. en. 2017-06-29.
  21. News: Exclusive: Sycamore Partners wins bankruptcy auction for The Limited - sources. February 21, 2017. Reuters. 2017-06-29.
  22. News: Staples in $6.9 billion sale to private equity firm Sycamore. Lauren. Hirsch. Uk.reuters.com. 29 June 2017. 7 June 2018.
  23. News: Dollar General scooping up 323 former Family Dollar stores. Retail Dive. 2017-06-29. en-US.
  24. Web site: Fickenscher. Lisa. Private-equity firm Sycamore poised to buy J.C. Penney, merge it with North Carolina chain Belks; Penney brand likely to vanish. 2020-11-25. MarketWatch. en-US.
  25. Web site: Associated Press. J.C. Penney's sale approved by bankruptcy court. 2020-11-25. MarketWatch. en-US.
  26. Web site: Royal Caribbean Group is shrinking its fleet, selling Azamara to private equity firm. Miami Herald. January 19, 2021.
  27. Web site: Thomas . Lauren . 2022-03-16 . Kohl's shares jump 17% after reports say Hudson's Bay, Sycamore are preparing bids . 2022-05-10 . CNBC . en.
  28. Web site: Partners . Sycamore . 2022-11-02 . Lowe's Announces Sale of Canadian Retail Business to Sycamore Partners . 2022-11-02 . www.prnewswire.com . en.
  29. News: 2023-09-28 . Sycamore to take apparel retailer Chico's FAS private for nearly $1 billion . en . Reuters . 2023-11-05.

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