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Daymon Acquired by Bain Capital & Chinese Retailer

Daymon Worldwide has been acquired by Bain Capital Private Equity and Chinese supermarket chain Yonghui Superstores for $413 million. Bain will get a 60 percent stake in Daymon, while Yonghui will get 40 percent, according to Reuters. In a statement, Yonghui said it will fund the deal by bank borrowing and cash while Bain said it will buy the stake from existing shareholders of the Stamford, Conn.-based Daymon, which was established in 1970 with a heritage deeply rooted in private brands. 

In a press release announcing the deal, Daymon said the global retail market continues to grow substantially, and is expected to reach $28 trillion by 2019 at an average annual growth rate of 3.8%. Meanwhile, Asia’s retail sales are expected to exceed $10 trillion by 2018 alongside “a significant shortage of expertise in brand development, brand strategy, merchandising services, among other areas, which is needed to support the strong growth within Asia’s retail market.”

Jim Holbrook, CEO of Daymon, described the acquisition as “a very positive development for our company, our employees and our clients. Bain Capital Private Equity is one of the world’s leading private investment firms and has a proven track record for partnering with management teams to provide the resources and capital needed to grow great companies. The firm’s extensive experience in global consumer and retail industries, will be key as we work to accelerate the growth of our company, increase our service offerings and expand our services.”

Bain Capital said it “will support the acceleration of Daymon’s global ambitions, enabling it to access increasing demand in Asia’s high growth markets.” The equity investor said its “significant resources” will further position it “to explore strategic acquisitions and accelerated organic growth.” 

Bain Capital Managing Director Jonathan Zhu said: “Daymon’s leading global market position and impressive track record of consistent revenue growth presented a very compelling opportunity for partnership. The company’s numerous achievements and accolades are a direct result of its talented leadership team, dedicated employees and their ability to set ambitious goals and execute accordingly.”

The company’s leadership team remains in place and will continue to oversee the day-to-day operations of the business, which has evolved over its 46-year history to become a leading retail service provider with strong global presence.

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