Bain to Buy Control of Bob’s Discount Furniture

The private equity firm Bain Capital has agreed to buy a majority stake in Bob’s Discount Furniture, the chain of discount stores known for its low-tech commercials featuring its founder, Bob Kaufman.

Bob’s current management team will continue to own a “significant stake” in the business, according to a press release announcing the deal on Monday.

The private equity firm KarpReilly/Apax, which has been a majority owner in Bob’s for the last nine years, will no longer be invested in the company, according to person close to the transaction who did not want to comment publicly because terms of the deal were not disclosed.

Mr. Kaufman, who got his start in furniture by selling waterbeds, opened his first Bob’s Discount Furniture store in Newington, Conn., in 1991. As the chain expanded, so did its commercials. At one point, Mr. Kaufman pitched his famous “Come on Down” line in 500 commercials that aired in the state every week.

One of the largest furniture retailers in the United States, Bob’s now operates 47 stores throughout the Northeast and Mid-Atlantic region.

“We are thrilled to partner with Bain Capital, a firm that has been investing in great retail businesses and consumer brands for decades,” said Ted English, Bob’s chief executive. “Bain Capital brings the experience and resources we need to support our continued expansion to serve more customers in more places, and to provide opportunities for advancement for our people.”

Bain Capital, which has more than $70 billion under management, has invested in other retail chains including Michaels Stores and Burlington Stores. Bain is also an investor in International Market Centers, the producer of annual home furnishing shows in Las Vegas and High Point, N.C.

“We are excited to partner with Ted English and the great management team at Bob’s Discount Furniture to support continued growth in this dynamic business,” Tricia Patrick, a principal at Bain, said in the statement. “We believe the company’s quality furniture at deep value fills an important need in the market today, and along with the authenticity of the Bob’s brand, should drive sustainable growth for years to come.”

Mr. Kaufman began selling waterbeds in the 1980s after they helped him recover from a leg injury suffered in a motorcycle accident. When the waterbed craze began to wane in the early 1990s, Mr. Kaufman and a partner took over a building in Newington where a furniture store had gone into bankruptcy.

Mr. Kaufman, who will retain the title of president, plans to remain as “the face of Bob’s,” according to a spokeswoman for the company.

Bank of America Merrill Lynch and Ropes & Gray advised Bob’s, while Kirkland & Ellis and PricewaterhouseCoopers are advising Bain. Royal Banks of Canada and UBS are providing financing.