A San Francisco Bay Area investment company, JH Partners has pursued equity investments in a variety of consumer markets over the years. Among JH Partners’ high profile transactions was the sale of a 40 percent stake it held in the nationwide jewelry chain retailer Alex and Ani. According to Reuters, JH Partners acquired its stake in the jeweler in 2012, with the deal bringing attention to the expansion potential of lifestyle brands that resonate with consumers in meaningful ways. Based in Rhode Island, Alex and Ani achieved success through a focus on eco-friendly materials and an emphasis on the positive energy of its products. At the time of the 2014 sale of JH Partners’ stake, the firm achieved a reported $350 million in revenue, as well as $80 million in earnings before depreciation, interest, tax, and amortization. The firm spanned 43 stores, as well as nearly 200 kiosks in Nordstrom, Bloomingdale’s, and other department stores. With UK-based Lion Capital, LLP acquiring the 40 percent stake, the remaining 60 percent stayed in the hands of founder and CEO Carolyn Rafaelian, who named the company after her daughters.
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JH Partners is an investment firm in Northern California that has taken equity in a number of growing brands, including Peet’s Coffee & Tea, Dr. Leonard’s Healthcare Corporation, and Design Within Reach. One of JH Partners’ noteworthy 2012 investments was in Alex and Ani, a unique jewelry company that achieved rapid expansion. Established by Carolyn Rafaelian, Alex and Ani expanded to more than 40 stores at malls nationwide as well as kiosks in Bloomingdale’s and Nordstrom. The lifestyle brand enjoyed a combination of strong customer loyalty and prominent cobranding opportunities including The Walt Disney Company and the United States Olympic Committee. After taking on 40 percent of Alex and Ani in 2012, JH Partners sold its stake in the company in 2014. Under the terms of the transaction, UK-based Lion Capital purchased the 40-percent stake, with founder Carolyn Rafaelian retaining 60 percent of the company. A private equity firm that specializes in growth capital strategies through investments in luxury brands, JH Partners works with both domestic and international companies. JH Partners once held a 40-percent share in Kate Somerville Skincare. In 2015, Unilever announced its acquisition of Kate Somerville, a high-end supplier of skincare products in the United States. The brand is highly regarded among luxury cosmetics retailers and is known for its “Active Balance Technology” that implements a proprietary blend of active and botanical ingredients. In her comments, Vasiliki Petrou, Unilever’s senior vice president of prestige brands, said she was excited to be making the acquisition, and that she looks forward to offering Kate Somerville products as part of the company’s expanded prestige lineup. The specific financial details of the purchase were not made public at the time of the sale. San Francisco’s JH Partners provides investment capital and industry-specific knowledge to help grow consumer-focused brands. JH Partners also offers expertise in promoting sales through online and offline marketing strategies, as well as television shopping channels such as QVC and HSN (Home Shopping Network). Following shareholders’ approval on December 29, 2017, Liberty Interactive Corporation, the parent company of QVC, completed a deal to acquire competitor HSN. First announced in July 2017, the $2.1-billion deal gives Liberty Interactive the nation’s third-largest mobile and e-commerce retailer. The top two spots are maintained by business giants Amazon and Walmart, respectively. Although organizational adjustments have already taken place as part of the merger, some aspects of the two companies will remain unchanged. HSN will stay at its headquarters in St. Petersburg, Florida, but the company will be under the direction of new leadership. QVC and HSN will also continue to exist separately as they both focus on strengthening their digital strategies. The newly-combined company expects to reach 23 million customers worldwide and generate revenue of $14 million in 2018. From its base in San Francisco, JH Partners manages investments in internationally known luxury brands, including Alex and Ani jewelry and Peet’s Coffee & Tea. Another successful brand JH Partners owned a controlling stake in was Country Home Products, which it sold to Generac Holdings Inc. in 2015. The Vermont-based Country Home Products was founded in 1960 by Lyman Wood under the business name Garden Way. He developed its first product, the Troy-Bilt Rototiller, and made it the top selling rototiller in the United States through the early 1980s. As Americans became more used to buying food at the market and less interested in tending large gardens, Country Home Products evolved with the times and began manufacturing property maintenance equipment. Today the company’s two main product lines are DR, which comprises commercial-grade power equipment intended for large properties, and Neuton, a line of more eco-friendly equipment intended for smaller properties. Generac Power Systems’ 2015 acquisition of company will lead to more innovation, now that the two companies--both leaders in power equipment manufacturing--have joined forces. Based in San Francisco, California, JH Partners invests in top consumer brands across a variety of markets. Adept at using marketing and branding to boost revenue, JH Partners has managed well-known brands like Peet's Coffee & Tea. Peet’s Coffee & Tea is known for its direct trade program that supplies its organic, fair-trade, and Rainforest Alliance Certified coffees. Peet’s-brand certified coffees are held to high social, environmental, and economic standards that the company says shows respect for the farmers who grow the beans. In line with its principles, the company works to establish relationships with its growers by visiting them regularly and paying a premium for top-quality coffee. In addition, Peet’s partners with local organizations and growers to offer education and development opportunities to improve the supply chain and support those in it. Through agronomy training, farmers receive the resources they need to improve quality and realize bigger crop yields. Growers also have access to business skills coaching. JH Partners, a San Francisco-based private equity firm, focuses on crafting effective marketing and sales strategies for its internationally known client brands. Representing brands ranging from salon products to household items and more, JH Partners recently sold its stake in the CHEFS Catalog to the Target Corporation. In operation since 1979 and previously owned by the Neiman Marcus Group, CHEFS Catalog has evolved from a basic catalog company into a multi-channel retailer with impressive revenue and online sales reach. A leading direct-to-consumer specialty kitchen retailer, CHEFS Catalog offers customers professional-quality cookware, bakeware, cutlery and other cooking tools and utensils. Well-known brands sold by CHEFS Catalog include Cuisinart, Le Creuset, KitchenAid, Wusthof and more. The CHEFS target market includes passionate home chefs and foodies who delight in trying new recipes. Under the terms of the sale, CHEFS Catalog will become a wholly owned subsidiary of Target, but will retain its popular brand name. San Francisco-based JH Partners, LLC, pursues results-focused investment strategies in the consumer-branding sphere. Focused on organizations with proven track records and significant growth potential, JH Partners has taken equity stakes in companies such as The Gap, Alex and Ani, and the skin care brand Kate Somerville. The firm took an initial investment position in the latter firm, which combines advanced clinical technologies with a strong celebrity following, in 2007. Featuring natural botanicals, the firm’s Active Balance Technology products are available at luxury spas and upscale retailers, as well as online and through direct-response television. The flagship Kate Somerville clinic has a high-profile West Hollywood location on Melrose Place. In April 2015, the worldwide cosmetics leader Unilever announced its purchase of Kate Somerville, with a key reason being the company’s success in making inroads in the dynamically expanding Asian market. A Unilever executive described the firm’s breakthrough products as complementing its existing portfolio of brands with high name recognition. Over the past two decades, JH Partners, LLC, has undertaken equity investments in a diversity of consumer brands that offer dynamic upside potential. Seeking out well-established brand names, JH Partners held a 60 percent stake in the American sportswear brand J.McLaughlin. In late 2015, Brentwood Associates undertook the acquisition of the firm’s stake in the Brooklyn multi-channel retailer, which has put a contemporary spin on classic designs since 1977. Describing Brentwood Associates’ decision to invest in J.McLaughlin, executives singled out its “distinct, timeless” merchandising concept that emphasizes proprietary design and craftsmanship, as well “standout” colors. The company is uniquely positioned to meet the needs of customers spanning upscale urban neighborhoods, premier resort destinations, and suburban main streets. The Brentwood Associates’ team envisioned J.McLaughlin as a core component in its efforts to expand its presence in retail and direct-to-consumer segments. In addition to the “warmly residential” atmosphere of retail locations, which build long-term brand loyalty, the company maintains a seamlessly functioning digital flagship that drives online market growth. An investment firm focused on growing the brands of innovative products and services companies, JH Partners oversees various domestic and international investments. JH Partners’ portfolio includes lifestyle, entertainment, and apparel brands such as FIGS, a company that creates comfortable and functional medical apparel for men and women. A Certified B Corporation, FIGS is part of a growing group of for-profit companies that are integrating a focus on positive social change into their business models. FIGS’s commitment to improving society and the environment is highlighted by its Thread for Threads initiative, which provides scrubs for health care professionals in need. In addition to increasing patient trust, clean scrubs boost confidence and help reduce infection rates by up to 66 percent. Since founding the initiative, FIGS has donated one set of scrubs for every set sold through its online retail store. With help from organizations such as International Medical Corps, Blanca’s House, and International Medical Relief, the company delivers clean scrubs to countries around the globe. To date, FIGS has donated over 75,000 sets of scrubs to health care providers in 28 countries. |
AuthorA firm actively investing in retail brands, JH Partners executes a business strategy focused on companies that directly serve consumers in the United States and abroad. Archives
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