Portfolio News
Castanea Partners Completes $175 Million Sale of Hanna Andersson to Kellwood Company
Newton, Massachusetts – July 26, 2007 - Castanea Partners announced today that it has completed the sale of Hanna Andersson to Kellwood Company (NYSE: KWD), a large branded apparel marketer. Kellwood purchased the company for $175 million. Hanna Andersson is a premium brand of children’s apparel sold through the company’s own catalog, web site, and mall-based stores. Castanea invested in Hanna Andersson in late 2004, alongside Dorset Capital.
Since its founding thirty years ago, Hanna has continuously offered high quality, distinctively styled, children’s clothing and accessories to its customers, generating significant loyalty, word of mouth advertising, and repeat purchase. Currently, the company has 13 retail stores, 5 outlet stores, and two additional stores slated to open this year.
“Through improved design and merchandizing, as well as continued outsourcing improvements, Phil Iosca and his team have been very successful in generating strong sales and improved gross margins across distribution channels. Additionally, the company has constructed an attractive pipeline of new retail opportunities in prime mall locations. We very much enjoyed working with the Hanna team and wish them well,” said Steve Berg, partner of Castanea Partners.
During its ownership of the company, the Castanea team worked alongside management to improve operational execution, expand the store base, and accelerate catalog and internet sales growth. From 2004 through 2006 revenue increased twenty percent and the company’s profitability tripled.