Global private equity firm Bain Capital has acquired US retail services company Daymon Worldwide and plans to expand its offerings across the Asian region, sister publication Private Equity International reported.
Bain together with Chinese supermarket chain operator Yonghui invested a combined $413 million for a 100 percent stake in the Connecticut-based company, according to a person with knowledge of the matter.
Bain, whose investment came from 2015-vintage $3 billion Bain Capital Asia Fund III, will buy 60 percent of Daymon while Yonghui will pick up the remaining 40 percent stake.
Daymon provides branding development and high-impact experiential consumer marketing and in-store services to over 100 retailers worldwide including 7-Eleven and Dollar General.
Among its research in the food and agri industry, a Daymon survey from 2015 focused on consumer fears about potentially harmful ingredients in food and personal care products found that “40 percent of consumers have lost enjoyment of the foods they eat due to safety and quality concerns, and many are actively seeking stores that offer product alternatives.” Nearly twice as many parents as non-parents reported such anxieties.
Commenting on the transaction Jonathan Zhu, managing director of Bain Capital, said: “We are thrilled to join forces with Daymon and look forward to working with them on the many growth opportunities this transaction will bring in the US and Asia’s emerging economies.”
The global retail market is expected to reach $28 trillion by 2019 at an average annual growth rate of 3.8 percent, while Asia’s retail sales are expected to exceed $10 trillion by 2018, Bain Capital said.
Bain, with $75 billion under management, has been an active investor in consumer and retail industries having invested in companies such as outdoor apparel maker Canada Goose, arts and crafts retailer Michael’s, and footwear brand TOMS.
Following the transaction, Daymon’s management team will remain in place and will continue to oversee the day-to-day operations of the business.
Bank of America Merrill Lynch served as financial advisor to Bain Capital Private Equity.