SPC Investment
May 2002
SPC Investment Thesis
- Well established brand leader with number one brand of footwear in the specialty surf market
- Attractive industry dynamics of global outdoor and alternative sport footwear market, with category doubling in previous five years
- Opportunity to augment entrepreneurial management and generate operating improvements
- Apparel represented a new category for the company that would add meaningful value
- A wide-range of strategic buyers would be interested in a large and growing company with a dominant niche
Key Sources of Value Creation
- Growth Strategies: Worked with management to expand footwear product into broader distribution, particularly extension of girl’s product into department stores and chain stores, and helped develop national accounts capabilities
- Product Line Extension: Initiated development of new apparel line to build on Reef’s brand momentum, demonstrate brand extendibility, and generate strategic buyer interest.
- Management: Augmented entrepreneurial management team through addition of CEO and CFO with strong private equity experience
- Exit: Managed complicated exit process after Company was approached by multiple strategic buyers
Exit
SPC sold Reef to VF Corp., a leading international branded apparel company, in April 2005
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Case Studies Overview
Eagle Pack Pet Foods
Fleischmann's Vinegar
Liberty Brand Products
Oregon Chai
Reef Holdings
S.T. Specialty Foods, Inc.
Totes Isotoner
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