Secondary Buyout • Retail

Sun Capital Partners Acquires Edwin Watts Golf Shops

On May 25, 2007, private equity firm Sun Capital Partners acquired retailer Edwin Watts Golf Shops from Wellspring Capital Management and Arrowhead Investment Management

Acquisition Context
  • This is Sun Capital Partners’ 9th transaction in the Retail sector.
  • This is Sun Capital Partners’ 39th transaction in the United States.
  • This is Sun Capital Partners’ 2nd transaction in Florida.
Investment Fate
  • Edwin Watts Golf Shops went bankrupt in 2013.

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M&A Deal Summary

Date May 25, 2007
Target Edwin Watts Golf Shops
Sector Retail
Buyer(s) Sun Capital Partners
Sellers(s) Wellspring Capital Management
Arrowhead Investment Management
Deal Type Secondary Buyout

Target Company

Edwin Watts Golf Shops

Fort Walton Beach, Florida, United States
Edwin Watts Golf Shops, LLC is a retailer of golf equipment, apparel and accessories. Founded in 1968, Edwin Watts markets its products through 59 company-owned stores located primarily in the Southeastern U.S.
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Buyer Overview 1

Buyer

Sun Capital Partners

Boca Raton, Florida, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1995
PE ASSETS 13.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
Sun Capital's corporate headquarters in Boca Raton, Florida.
Sun Capital's corporate headquarters in Boca Raton, Florida.

Sun Capital Partners is a large private equity firm focused on leveraged buyouts, equity, debt, and other control investments in North America, Asia, and Europe. Sun looks for businesses that can benefit from the Firm's operating experience including underperformers, turnarounds, and special situations. Target companies typically have $50 million to $1 billion in revenue with strong market positions. Sectors of interest include paper and packaging, food and beverages, metals and mining, automotive after-market parts, consumer products, financial services, healthcare, media and communications, building products, telecommunications, technology, retailing and catalogs, restaurants, manufacturing and industrial. Sun Capital was formed in 1995 and is based in Boca Raton, Florida.


Deal Context for Buyer #
Overall 49 of 172
Sector: Retail 9 of 29
Type: Secondary Buyout 5 of 45
State: Florida 2 of 7
Country: United States 39 of 118
Year: 2007 11 of 20
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-05-11 Berkline/Benchcraft Holdings

Morristown, Tennessee, United States

Berkline/Benchcraft is a manufacturer of motion upholstery furniture.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-07-01 True Textiles

Grand Rapids, Michigan, United States

True Textiles, Inc. is a commercial contract manufacturer of interior fabrics and upholstery product for the office furniture industry, as well as a leading provider of specialized environmentally-friendly fabrics for automotive, healthcare, and hospitality solutions.

Buy -

Seller Profiles 2

SELLER

Wellspring Capital Management

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1995
PE ASSETS 4.5B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Wellspring Capital Management is a mega-sized private equity firm that focused on a variety of transaction situations. The Firm will consider buyouts of private companies, acquisitions of divisions or subsidiaries of public companies, shareholder liquidity needs, partnering with entrepreneurs for growth opportunities, and special situations. Wellspring does not have any sector preferences and is capable of pursuing transactions valued up to $1 billion. Wellspring Capital Management was formed in 1995 and is based in New York City.


Deal Context for Seller #
Overall 9 of 37
Sector: Retail 1 of 1
Type: Secondary Buyout 2 of 16
State: Florida 1 of 2
Country: United States 7 of 33
Year: 2007 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-01-16 ChemAid Laboratories

Saddle Brook, New Jersey, United States

ChemAid Laboratories, Inc. is a formulator and manufacturer of skincare, hair care and bath and body products.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-01-18 PFG

Richmond, Virginia, United States

PFG is a distributor of food products and snacks. PFG delivers food and food-related products to more than 130,000 independent and national chain restaurants, quick-service eateries, pizzerias, theaters, schools, hotels, healthcare facilities and other institutions across the United States. PFG was founded in 1885 and is based in Richmond, Virginia.

Buy $1.4B
SELLER

Arrowhead Investment Management

Greenwich, Connecticut, United States

Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1996
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Arrowhead Investment Management is a provider of subordinated debt, preferred stock and non-control common equity to mid-sized businesses. Arrowhead invests alongside private equity sponsors in acquisitions, buyouts, recapitalizations and growth capital transactions. Arrowhead is a generalist investor, however the Firm tends to focus on healthcare, packaging, chemicals, consumer products, industrial manufacturing, value-added distribution and business services. Arrowhead looks to commit $10 to $100 million in transactions valued up to $500 million. Arrowhead Investment Management was formed in 1996 and is based in Greenwich, Connecticut.


Deal Context for Seller #
Overall 11 of 24
Sector: Retail 1 of 1
Type: Secondary Buyout 5 of 14
State: Florida 1 of 1
Country: United States 11 of 24
Year: 2007 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-01-09 TIDI

Neenah, Wisconsin, United States

TIDI is a manufacturer, marketer, and distributor of a diversified portfolio of medical products focused on supporting caregivers and protecting patients. Based in Neenah, WI, the Company's broad product set is designed to help customers prevent "Never Events" (medical errors that should never occur), reduce costs, increase efficiencies, and drive better patient outcomes. TIDI Products was founded in 1969 and is based in Neenah, Wisconsin.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-07-01 Ecovyst

Malvern, Pennsylvania, United States

Ecovyst is a worldwide producer of specialty inorganic performance chemicals, high-end catalysts and engineered glass beads for the consumer, oil & gas, transportation safety, specialty plastics and industrial markets. Ecovyst was founded in 1831 and is based in Malvern, Pennsylvania.

Sell $1.5B