1-800 Contacts sees the future and it is private equity
1-800 Contacts Inc. is joining the growing ranks of publicly traded retailers and direct marketers selling all or a large portion of the business to a private equity group.
In this case 1-800 Contacts, No. 91 in the Internet Retailer Top 500 Guide, is being acquired by Fenway Partners LLC, a New York investment banking firm, for approximately $340 million.
The deal is expected to close by the second half of 1-800 Contacts’ 2007 fiscal year. The deal has been approved by the 1-800 Contacts board, but is subject to shareholder approval.
"1-800 Contacts is a terrific business that fits well with our investment strategy,” says Fenway Partners managing director Tim Mayhew.
Sonenshine Partners LLC and Goldman, Sachs & Co. served as financial advisors to the 1-800 Contacts board during the transaction and Kirkland & Ellis LLP acted as legal counsel.
1-800 Contacts stocks more than 20 million different pairs of contact lenses and delivers more than 150,000 each day to its customers. More than 50% of the company’s revenue occurs online.
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