A maker of popular backpacks with cartoon characters and other children’s gear is planning to grow â€" with the help of a private equity firm.
Skip Hop agreed Friday to sell a majority stake in itself to Fireman Capital Partners, a consumer-focused investment firm. Financial details of the transaction weren’t disclosed, but people briefed on the matter said that the deal was valued at nearly $60 million.
The investment is the latest by Fireman Capital, a five-year-old firm that has scored a few big hits in recent years. Most recently, the buyout shop sold Hudson Jeans, a premium denim brand, to Joe’s Jeans Inc. for nearly $98 million, tripling its investment.
Two years ago, it sold the juice maker Evolution Fresh to Starbucks for about $30 million.
Now Fireman Capital is turning to Skip Hop, which was founded 10 years ago by Ellen and Michael Diamant. Then new parents, the couple decided to create a line of colorful diaper bags.
Now the company produces a range of items, ranging from bath toys to a popular line of apparel, backpacks and accessories festooned with cartoon animals. Its wares are sold in more than 4,000 locations, from Toys “R†Us to Bloomingdale’s and Nordstrom.
Marla Sabo, a partner at Fireman Capital, said in an interview that the private equity firm first met the Diamants about a year ago and quickly agreed that Skip Hop had potential. As of now, the company is showing strong growth in sales and profits, she added.
“It’s a brand that resonates very well with the consumer and with the mother,†Ms. Sabo said. “It’s something very genuine and authentic.â€
Now the focus will be on building up Skip Hop’s distribution network and expand its presence abroad, particularly in Europe and Asia.
The couple â€" Mr. Diamant serves as chief executive, while Ms. Diamant is chief creative officer â€" will remain involved at the company.
“It’s a mature management team,†Dan Fireman, founder and managing partner of Fireman Capital, said. “That’s really attractive to us. It’s not a turnaround.â€
