Factory Connection
THE TRANSACTION:
Founders Investment Banking, LLC acted as the sole adviser to the shareholders of Guntersville Outlet, Inc. in the recapitalization of the business by Alpha Capital Partners, Ltd., a Chicago based private equity group.
THE COMPANY:
Guntersville Outlet, Inc., operating under the “Factory Connection” name, manages a chain of over 160 value-priced retail apparel and accessories stores located in ten states across the Southeast. The Company targets cost conscious women and men in upper-lower and middle-income households who value fashionable clothing and accessories at low prices. The Company has built its business and reputation by operating in small communities, generally with populations of 5,000 or more, that are traditionally underserved by other apparel and accessory retailers.
DESCRIPTION OF TRANSACTION:
Founders was engaged to fully explore the capital market options available to the Company and its shareholders. Founders crafted a solution to pursue a recapitalization with a well-funded equity investor able to add value to the business with its strong industry knowledge and experience with geographic expansion in the retail space. The transaction accomplished the owners’ key goals and objectives:
- realizing personal liquidity to diversify wealth at a strong valuation;
- maintain sizeable equity position for realization of growth/upside;
- retain operational control of company to fully achieve vision;
- attract a high-value add financial partner to provide capital for growth initiatives and strategic expertise and support.
