M&A Deal Summary

KKR, Gordon Brothers Finance, Bain Capital Private Equity and Vornado Realty Trust Acquire Toys R Us

On March 17, 2005, private equity firm KKR, lender Gordon Brothers Finance, private equity firm Bain Capital Private Equity and Vornado Realty Trust acquired retailer Toys R Us for 6.6B USD

Acquisition Highlights
  • This is KKR’s 5th, Gordon Brothers Finance’s 7th, Bain Capital Private Equity’s 4th and Vornado Realty Trust’s 1st transaction in the Retail sector.
  • This is KKR’s 15th, Gordon Brothers Finance’s , Bain Capital Private Equity’s 8th and Vornado Realty Trust’s largest (disclosed) transaction.
  • This is KKR’s 20th, Gordon Brothers Finance’s 6th, Bain Capital Private Equity’s 26th and Vornado Realty Trust’s 1st transaction in the United States.
  • This is KKR’s 3rd, Gordon Brothers Finance’s 3rd, Bain Capital Private Equity’s 2nd and Vornado Realty Trust’s 1st transaction in New Jersey.
Investment Fate
  • Toys R Us went bankrupt in 2017.

M&A Deal Summary

Date 2005-03-17
Target Toys R Us
Sector Retail
Buyer(s) KKR
Gordon Brothers Finance
Bain Capital Private Equity
Vornado Realty Trust
Deal Type Going Private
Deal Value 6.6B USD
Advisor(s) Credit Suisse Investment Banking (Financial)
Simpson Thacher & Bartlett LLP (Legal)

Target

Toys R Us

Wayne, New Jersey, United States
website
Toys “R” Us is a specialty toy and juvenile products retailer, selling merchandise globally through more than 1,600 stores in over 34 countries, and through the company’s websites. Toys 'R' Us was established in 1948 and is headquartered in Wayne, New Jersey.

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Buyer(S) 4

Buyer

KKR

New York, New York, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1976
PE ASSETS 367.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
KKR's office in Menlo Park, California.
KKR's office in Menlo Park, California.

Kohlberg Kravis Roberts & Co. LP (KKR) is a global investment firm founded by Jerome Kohlberg, Henry Kravis, and George Roberts. The Firm is separated into three business segments which include private markets, public markets, and capital markets and principal activities. KKR's private equity practice invests in management buyouts, take privates, corporate divestitures, industry consolidations, and partnerships with family-owned companies. KKR will consider investments in a broad range of industries located in North America, Europe, Asia, and Australia/New Zealand. Sectors of interest include chemicals, consumer products, energy and natural resources, financial services, healthcare, industrial, media/communications, retail, and technology. In addition to its traditional principal investment activity business, KKR also invests in infrastructure assets. KKR was formed in 1976, is based in New York City, and has offices throughout the globe.


DEAL STATS #
Overall 32 of 410
Sector (Retail) 5 of 16
Type (Going Private) 5 of 27
State (New Jersey) 3 of 7
Country (United States) 20 of 178
Year (2005) 2 of 8
Size (of disclosed) 15 of 90
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-01-02 MTU Aero Engines

Munich, Germany

MTU Aero Engines is a manufacturer and maintenance services for civil and military aero engines and industrial gas turbines. MTU Aero Engines was founded in 1913 and is based in Munich, Germany.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-04-26 Accuride

Evansville, Indiana, United States

Accuride Corp. is a manufacturer and supplier of wheels and wheel-end components to the global commercial vehicle markets. The company’s products include steel and aluminum commercial vehicle wheels and wheel‐end components and assemblies; and steel wheels for the European automotive and global agricultural, construction, and industrial equipment markets. Accuride Corp. was founded in 1986 and is based in Evansville, Indiana.

Sell -
Buyer

Gordon Brothers Finance

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor

website


Category Lender
Founded 1903
PE ASSETS 500M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

GB Merchant Partners (GB) is the private investment arm of the Gordon Brothers Group. GB looks to make traditional private equity investments as well as provide structured loans and acquire secondary debt instruments. Within private equity, GB seeks investments in all segments of the consumer products and services sectors, including retail, distribution, wholesale, licensing and manufacturing. Target companies 'usually have meaningful brand equity, or a product or service that is capable of creating a leading and defensible market position'. Prospective transactions include management buyouts, growth capital financings, as well as restructurings or turnarounds. GB is based in Boston with an additional office in New York City.


DEAL STATS #
Overall 9 of 19
Sector (Retail) 7 of 11
Type (Going Private) 1 of 3
State (New Jersey) 3 of 4
Country (United States) 6 of 11
Year (2005) 1 of 1
Size (of disclosed) 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-11-01 Dollarama

Montreal, Quebec, Canada

Dollarama is a dollar store chain own and operates over 330 stores in six provinces. The Company's stores offer a wide assortment of quality everyday merchandise at a fixed price point of $1.00. Dollarama was founded in 1992 and is based in Montreal, Canada.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-09-29 Things Remembered

Highland Heights, Ohio, United States

Things Remembered, Inc. is a personalized gift chain providing solutions for all gift-giving occasions through more than 650 stores across the U.S. and through its catalogs and website. The Company specializes in personalizing gifts through its engraving and monogramming technology.

Buy $200M
Buyer

Bain Capital Private Equity

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1984
PE ASSETS 44.2B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Bain Capital Private Equity (BCPE), is the private equity investment arm of alternative asset management firm, Bain Capital. BCPE targets leveraged buyout and growth capital transactions in a wide variety of industries including information technology, communications, media, healthcare, industrial/manufacturing, retail/consumer, and financial services. Bain Capital is based in Boston with additional offices in New York, London, Mumbai, Hong Kong, Shanghai, Tokyo, and Munich.


DEAL STATS #
Overall 34 of 217
Sector (Retail) 4 of 12
Type (Going Private) 1 of 19
State (New Jersey) 2 of 6
Country (United States) 26 of 114
Year (2005) 2 of 8
Size (of disclosed) 8 of 67
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-01-27 Alliance Laundry Systems

Ripon, Wisconsin, United States

Alliance Laundry Systems is a manufacturer of stand-alone commercial laundry equipment in North America. Alliance Laundry produces a full line of washing machines, dryers, and pressing machines under the brand names of Speed Queen, UniMac, Huebsch and Ajax.

Sell $450M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-05-01 Jack Wolfskin KGaA

Idstein, Germany

Jack Wolfskin GmbH & Co. KGaA is a provider of functional outdoor clothing, footwear and equipment in Europe and the largest franchisor in the German specialist sports retail market. Jack Wolfskin products are currently available in more than 400 franchise stores and at 4,000 points of sale across Europe and Asia. Jack Wolfskin products feature a high degree of functionality, user-friendliness and innovation.

Sell -
Buyer

Vornado Realty Trust

New York, New York, United States

website


Category Company
Sector Real Estate
Employees2,899
Revenue 1.5B USD (2020)
DESCRIPTION

Vornado Realty Trust, is a fully integrated real estate company. Vornado owns and operates office, retail, and showroom properties with a large concentration in the NY Metro area and in the Washington, DC and Northern Virginia area. Vornado has a long track record of investing in the retailing sector and currently owns 94 retail properties in seven states and Puerto Rico.


DEAL STATS #
Overall 1 of 1
Sector (Retail) 1 of 1
Type (Going Private) 1 of 1
State (New Jersey) 1 of 1
Country (United States) 1 of 1
Year (2005) 1 of 1
Size (of disclosed) 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-09-19 Toys R Us

Wayne, New Jersey, United States

Toys “R” Us is a specialty toy and juvenile products retailer, selling merchandise globally through more than 1,600 stores in over 34 countries, and through the company’s websites. Toys 'R' Us was established in 1948 and is headquartered in Wayne, New Jersey.

Sell -