RG Barry Brands (RGB), the parent of Dearfoams, announced its acquisition by Marubeni Growth Capital U.S. (MGCU), a wholly-owned subsidiary of Tokyo-based Marubeni Corporation. RGB reported that the deal “marks a significant milestone” for the company, positioning the company for accelerated organic and inorganic growth.
Terms were not disclosed.
RGB becomes the first investment of the Next Generation Corporate Development Division of Marubeni in the U.S.
In September 2014, Mill Road Capital, a private investment firm focused on investing in publicly traded micro-cap companies and funds affiliated with Blackstone Tactical Opportunities, took RG Barry Corp. private in a deal valued at $215 million.
RGB, led by chief executive officer Bob Mullaney, also owns Baggallini, Columbus Product Group and Planet A.
Since joining the company at the end of 2017, RGB said that Mullaney had “successfully transformed a transactional business into a strategic brand platform producing double-digit compound annual revenue and EBITDA growth.”
RGB plans to “capitalize on its core assets to develop new capabilities that utilize ecological innovation as a business accelerant.” This acquisition will support strategic investment to drive growth for the Dearfoams, Baggallini, and Planet A brands. It will also enable RGB to “leverage its operational capabilities to drive growth through targeted acquisitions.”
Launched in 2022, MGCU is an initiative of the Next Generation Corporate Development Division of Marubeni, reportedly founded to capitalize on the megatrends in the consumer sector.
“Investing in RGB is a strategic milestone for Marubeni and signifies a unique opportunity to align with an industry leader,” stated Toshihiro Fukumura, executive officer, chief operating officer, Next Generation Corporate Development Division. “By supporting RGB’s strategic initiatives and a strong management team, we are not only fostering their continued success but also strengthening our own portfolio and commitment to innovation.”
“MGCU was attracted to RGB’s unique combination of authentic heritage brands, operational acumen and strong omnichannel distribution network,” commented Taylor Rettig, MGCU’s President. “We are looking forward to partnering with Bob and the management team to accelerate the Company’s growth, amplify the brands, and to identify strategic opportunities to add additional brands under the RGB umbrella that would benefit from the robust infrastructure of the platform.”
The acquisition closed June 4, 2024, following customary regulatory approvals. As part of the transaction, Blackstone will fully exit its ownership position, and Mill Road Capital will maintain a minority equity stake.
Image courtesy Dearfoams
