JACKSONVILLE, Fla.--(BUSINESS WIRE)--Acosta Sales & Marketing, a full-service sales and marketing agency in the consumer goods industry, today announced it has signed a definitive agreement for an equity investment by The Carlyle Group (“Carlyle”), a global alternative asset manager. Carlyle will purchase the full ownership stake of funds affiliated with Thomas H. Lee Partners, L.P. (“THL”). GIC, which is currently an investor in Acosta, will re-invest in the company. Following the investment, Acosta senior management will continue to lead the company, and operations will remain the same. Acosta’s broad management team will continue to have significant ownership of the company. Financial terms of the transaction, which is expected to close in Q3 2014, were not released.
“Acosta is well positioned to meet the changing needs of consumer product manufacturers and retailers seeking more effective and efficient outsourced sales and marketing solutions,” said Sandra Horbach, Managing Director and Head of Carlyle’s Consumer & Retail team. “We are impressed with the company’s associates, capabilities, and the quality of its client and customer portfolios and its significant growth potential.”
“Acosta has benefited tremendously from its partnership with THL, and their financial and operational expertise was an important component of our growth and success,” said Robert Hill, President & CEO of Acosta. “Carlyle has an established track record of investing in respected companies with a history of positive growth. Together, we are excited to lead Acosta into a new chapter with a focus on expanding services to meet a broader set of client and retailer needs.”
“We have enjoyed working with Robert Hill and the management team at Acosta and are proud of what we have accomplished together,” said Kent Weldon, Managing Director at THL. “Acosta has built a world-class business and expanded its footprint across North America. We wish Acosta and its new partner the best in their future endeavors and are extremely confident they will achieve continued success.”
Since Acosta first announced its partnership with THL in 2011, the company has grown to more than 37,000 associates in 110 locations throughout the U.S. and Canada. Acosta is the agency of choice and the sales and marketing powerhouse behind most of the trusted brands enjoyed by consumers at retail and foodservice.
Goldman Sachs & Co. and Barclays served as financial advisor and Weil, Gotshal & Manges LLP served as legal counsel to Acosta. Morgan Stanley and J.P. Morgan Securities LLC served as financial advisors and Latham & Watkins served as legal advisor to Carlyle. Goldman Sachs, J.P. Morgan Securities LLC and Morgan Stanley have agreed to provide debt financing for the transaction.
About Acosta Sales & Marketing
Acosta is the sales and marketing powerhouse behind most of the trusted brands seen in stores every day. The company provides a wide range of outsourced sales, marketing and retail merchandising services to manufacturers and retailers throughout the U.S. and Canada. For more than 85 years, Acosta has led the industry in helping consumer goods companies move products off shelves and into shoppers’ baskets. Visit www.acosta.com.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $199 billion of assets under management across 120 funds and 133 fund of funds vehicles as of March 31, 2014. Carlyle's purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,600 people in 38 offices across six continents.
About Thomas H. Lee Partners, L.P.
Thomas H. Lee Partners, L.P. ("THL") is one of the world's oldest and most experienced private equity firms. The firm invests in growth-oriented global businesses, headquartered principally in North America, across three broad sectors: Consumer & Healthcare, Media & Information Services, and Business & Financial Services. Since its founding in 1974, THL has raised approximately $20 billion of equity capital and invested in more than 100 businesses with an aggregate purchase price of more than $150 billion. THL strives to build great companies of lasting value and generate superior investment returns. For more information, please visit www.thl.com.
GIC is a leading global investment firm with well over US$100 billion in assets under management. Established in 1981, the firm manages Singapore’s foreign reserves and is uniquely positioned for long-term and flexible investments across a wide range of asset classes, including public equities, fixed income, real estate, and private equity. In private equity, GIC invests through funds as well as directly in companies, partnering with our fund managers and management teams to help world class businesses achieve their objectives. GIC employs more than 1,200 people across 10 offices in Singapore, Beijing, London, Mumbai, New York, San Francisco, Sao Paulo, Seoul, Shanghai, and Tokyo. For more information, please visit www.gic.com.sg.