Private equity strikes again!
Shelburne, VT-based Vermont Teddy Bear Co. announced on May 16 an investment group led by Boston-based private equity firm The Mustang Group would buy out a significant portion of the company’s common stockholders. In addition to its core brand, Vermont Teddy Bear includes fresh-flowers mailer Calyx & Corolla and gift merchants PajamaGram and TastyGram.
Under the terms of the agreement, the common stockholders not continuing as investors will receive $6.50 in cash per share. The deal is expected to close by the end of September. The company will continue to include “significant participation by Vermont investors,” including Middlebury, VT-based investment firm FreshTracks Capital and members of the Vermont Teddy Bear management team.
Following the transaction, Elisabeth Robert will continue as president/CEO. Also remaining in place will be vice president of marketing Irene Steiner, vice president of operations Catherine Camardo, and chief accounting officer Mark Sleeper.
The Mustang Group invests in middle-market companies throughout North America. Vermont Teddy Bear is the latest in a slew of private equity transactions. In recent weeks private equity groups have scooped up the likes of Dallas-based cataloger/retailer Neiman Marcus Group (Texas Pacific and Warburg Pincus on May 2), Nashua, NH-based cataloger/retailer Brookstone (JW Childs Associates and Temasek Holdings, with Singapore-based manufacturer/marketer OSIM International in April 15), and Westerly, RI-based Paragon Holdings (Reliant Equity Investors/BluSky Brands in March).