Add-on Acquisition • Retail

Direct Brands Acquires SkyMall

On April 4, 2012, Direct Brands acquired retailer SkyMall from Spire Capital Partners

Acquisition Context
  • This is Direct Brands’ 1st transaction in the Retail sector.
  • This is Direct Brands’ 1st transaction in the United States.
  • This is Direct Brands’ 1st transaction in Arizona.
Investment Fate
  • SkyMall went bankrupt in 2015.
  • SkyMall was sold to a strategic buyer in 2015.

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M&A Deal Summary

Date April 4, 2012
Target SkyMall
Sector Retail
Buyer(s) Direct Brands
Sellers(s) Spire Capital Partners
Deal Type Add-on Acquisition
Advisor(s) Petsky Prunier (Financial)

Target Company

SkyMall

Phoenix, Arizona, United States
SkyMall, Inc. is a retailer that provides a large selection of premium-quality products and services to customers from a wide variety of merchants and partners. SkyMall is best known for its in-flight catalog, which is seen by approximately 88 percent of all U.S. airline passengers. Through its SkyMall.com Web site, SkyMall offers an expanded selection of products and services to online shoppers.
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Buyer Overview 1

Buyer

Direct Brands

New York, New York, United States

Category Company
Sector Distribution
DESCRIPTION

Direct Brands is one of the largest direct-to-consumer distributors of media products in the U.S. The company is home to DVD and book club brands, including Columbia House, Doubleday Book Club, Book-of-the-Month Club, and BOMC2.com, as well as a number of special interest and lifestyle book clubs. The company serves members in the U.S. through its various club catalogs and online.


Deal Context for Buyer #
Overall 1 of 1
Sector: Retail 1 of 1
Type: Add-on Acquisition 1 of 1
State: Arizona 1 of 1
Country: United States 1 of 1
Year: 2012 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-01-24 SkyMall

Phoenix, Arizona, United States

SkyMall, Inc. is a retailer that provides a large selection of premium-quality products and services to customers from a wide variety of merchants and partners. SkyMall is best known for its in-flight catalog, which is seen by approximately 88 percent of all U.S. airline passengers. Through its SkyMall.com Web site, SkyMall offers an expanded selection of products and services to online shoppers.

Sell -

Seller Profile 1

SELLER

Spire Capital Partners

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2000
PE ASSETS 900M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Spire Capital Partners is a private equity firm that targets buyout investments in mid-sized information services, media, communications, and business service companies. The Firm looks for cash-flow positive, US-based businesses with high barriers to entry. Spire seeks to commit $15 to $125 million of equity per transaction and has an investment horizon of three to seven years. Spire Capital Partners was formed in 2000 and is based in New York City.


Deal Context for Seller #
Overall 11 of 27
Sector: Retail 1 of 1
Type: Add-on Acquisition 10 of 19
State: Arizona 1 of 1
Country: United States 10 of 26
Year: 2012 1 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-05-01 Spindletop Group

Austin, Texas, United States

Spindletop Group provides locating fragmented industries on the web and applying new technologies and industry expertise to improve the search experience and bring the community together. Spindletop is based in Austin, Texas.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-05-16 Certiport

American Fork, Utah, United States

Certiport, Inc. is a developer, marketer and distributor of education and certification testing programs for end-users of Microsoft, Adobe and Digital Literacy programs in the academic, corporate and workforce segments worldwide. Certiport is a well positioned, scalable business services company with a worldwide marketing and distribution network, consisting of more than 12,000 testing centers.

Sell $140M