M&A Deal Summary

Sun Capital Partners Acquires FFO Home

On February 11, 2016, private equity firm Sun Capital Partners acquired retailer FFO Home from Alpine Investors and Transition Capital Partners

Acquisition Highlights
  • This is Sun Capital Partners’ 25th transaction in the Retail sector.
  • This is Sun Capital Partners’ 86th transaction in the United States.
  • This is Sun Capital Partners’ 1st transaction in Arkansas.
Investment Fate
  • FFO Home was sold to a publicly-traded strategic buyer in 2020.

M&A Deal Summary

Date 2016-02-11
Target FFO Home
Sector Retail
Buyer(s) Sun Capital Partners
Sellers(s) Alpine Investors
Transition Capital Partners
Deal Type Secondary Buyout

Target

FFO Home

Fort Smith, Arkansas, United States
Furniture Factory Outlet (FFO Home) is a furniture retailer that provided the lowest prices to our customers day-in-and-day-out. The company operates 36 retail stores in Arkansas, Missouri, Oklahoma, and Kansas. FFO Home also manufactures bedding under the Comfort Coil and Natural Elements brands. The retailer offers superior value products priced below the competition and distinguishes itself by eschewing the showroom distribution model and allowing consumers to purchase products immediately from on-site inventory. FFO Home was founded in 1984 and is headquartered in Fort Smith, Arkansas.

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Buyer(S) 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 STATS #
Overall 129 of 172
Sector: Retail M&A 25 of 29
Type: Secondary Buyout M&A Deals 23 of 45
State: Arkansas M&A 1 of 1
Country: United States M&A 86 of 118
Year: 2016 M&A 2 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-02-01 CCW

Omaha, Nebraska, United States

CCW is a franchisee of HuHot Mongolian Grill restaurants. CCW operates restaurants in Iowa, Kansas and South Dakota. CCW is based in Omaha, Nebraska.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-02-12 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.

Sell -

Seller(S) 2

SELLER

Alpine Investors

San Francisco, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2001
PE ASSETS 18.0B USD
Size Mega
Type Sector Focused
DESCRIPTION

Alpine Investors is a private investment firm that principally targets small to mid-sized, software and service company acquisitions in the US, Canada, Europe, and Australia. Alpine looks for businesses with cash-flow of $1 to $50 million and will consider both control and non-control positions. Alpine prefers businesses with recurring revenues, identifiable growth opportunities, sustainable margins, and significant barriers to entry. Alpine Investors was established in 2001 and is based in San Francisco, California.


DEAL STATS #
Overall 9 of 25
Sector: Retail M&A 1 of 3
Type: Secondary Buyout M&A Deals 4 of 10
State: Arkansas M&A 1 of 1
Country: United States M&A 9 of 25
Year: 2016 M&A 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-12-08 Linx Technologies

Merlin, Oregon, United States

Linx Technologies provides wireless modules, antennas, connectors, and wireless design services. It offers radio frequency (RF) modules, integrated circuits, OEM RF products, evaluation kits, and master development systems, interface modules, and connectors and cable assemblies. Linx Technologies was founded in 1997 and is based in Merlin, Oregon.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-10-05 Avitru

Alexandria, Virginia, United States

Avitru empowers architects, engineers, contractors, and owners to make better, faster decisions. As the exclusive developer of AIA MasterSpec®, AVITRU has leveraged its position in the market to enable the collaborative exchange of expert knowledge to design, build, and operate a better-built environment. The AVITRU team is committed to constructing a world where better building leads to better lives.

Buy -
SELLER

Transition Capital Partners

Southlake, Texas, United States

Investor Investor Investor Investor


Category Family Office
Founded 1993
Size Small
Type Sector Agnostic
DESCRIPTION

Transition Capital Partners is a private investment firm focused on leveraged recapitalizations of entrepreneurial service-based businesses. Transition generally looks for high-growth companies with $3 million to $20 million of EBITDA where the firm can help position the company for the next level of growth. Sectors of interest include healthcare services, non-asset based logistics, retail, alternative energy and services, security services, direct marketing, software, branded food/beverage, education, telecom, oil/gas services, and outsourcing. The Firm is affiliated with family office Patterson Thoma Investments. Transition Capital Partners was formed in 1993 and is based in Southlake, Texas.


DEAL STATS #
Overall 22 of 29
Sector: Retail M&A 2 of 2
Type: Secondary Buyout M&A Deals 7 of 10
State: Arkansas M&A 1 of 1
Country: United States M&A 22 of 29
Year: 2016 M&A 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-01-05 D&S Community Services

Austin, Texas, United States

D&S Community Services emphasizes exceptional quality services and innovation and offers a broad array of home and community-based services specially designed to help individuals with I/DD realize a life of independence and self-determination. D&S Community Services was founded in 1991 and headquartered in Austin, Texas.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-03-14 Hayes Software Systems

Austin, Texas, United States

Hayes Software Systems is a provider of SaaS software and service solutions designed to educate school districts on how to best manage their inventories. Hayes Software Systems was founded in 1990 and is based in Austin, Texas.

Buy -