Savers® Enters into Agreement to Receive Increased Investment from Ares Management
Private Equity Funds Managed by Ares to Become Majority Owner in Savers® Upon Closing
BELLEVUE, Wash., March 25, 2021 /PRNewswire/ -- Savers® (the "Company") announced today that it has entered into a definitive purchase and sale agreement with funds managed by the Private Equity Group of Ares Management Corporation (NYSE: ARES) ("Ares"). Ares, which is currently a minority owner of the Company, will acquire full ownership interest of the global thrift retailer from funds managed by Crescent Capital Group, LP, which will sell their majority position in the Company as part of the transaction. Terms of the agreement were not disclosed. The closing of the transaction is subject to customary closing conditions.
Since its founding in 1954, Savers® has paved the way for today's thrift movement, offering a wide selection of pre-owned clothing, accessories and household goods that are affordable, sustainable and stylish. With more than 21,000 team members and nearly 300 stores throughout North America and Australia, the Company is one of the largest for-profit thrift retailers in the world. Savers is leading one of the fastest-growing retail categories, delivering strong operating performance and consistent sales growth averaging $1.2 billion in annual revenue.
"Ares is excited to support Savers as we transition to its next phase of growth," said Scott Graves, Partner and Co-Head of the Ares Private Equity Group. "The Company's value proposition to customers, strength of charitable partner relationships, and positive impact on the environment make it well-positioned to capitalize on the growing demand for pre-owned goods."
"We believe Savers will continue to be at the forefront of promoting sustainability in retail," added Aaron Rosen, Partner in the Ares Private Equity Group. "We are proud to support the Company's CEO Mark Walsh and all members of the Savers team as they continue to lead in this regard."
"We look forward to continuing our partnership with Ares and leveraging our sponsor's resources to build on our momentum as a brand, grow our loyal customer base, and accelerate strategic initiatives that are expected to revolutionize the thrift industry," said Mark Walsh. "Ares' further investment and belief in the strength of our differentiated business model will help advance our mission to provide sustainable style at a savings, and make a lasting impact on communities and the planet."
"We have enjoyed working with Mark Walsh and the Savers executive team to build and further strengthen the Company's positioning as the market leader in thrift retailing over the course of our ownership as it continues on its growth objectives," said Chris Wright, Managing Director and Head of Private Markets at Crescent Capital. "We have been proud to work alongside a team so committed to the promotion of reuse and sustainability."
For decades, Savers has advocated for a more circular and sustainable future by extending the life cycle of pre-owned goods. On average, the Company diverts more than 700 million pounds of reusable clothing and textiles from landfills each year. Currently, less than 1 percent of used clothing can be "recycled" into new garments, making reuse even more important as the fashion industry is the leading contributor to pollution and the second-largest consumer of water worldwide. As shoppers consider the impact of their own clothing footprint, they are more likely than ever to shop thrift.
Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager operating integrated groups across Credit, Private Equity, Real Estate and Strategic Initiatives. Ares Management's investment groups collaborate to deliver innovative investment solutions and consistent, attractive investment returns for fund investors throughout market cycles. As of December 31, 2020, Ares Management's global platform had approximately $197 billion of assets under management with more than 1,450 employees operating across North America, Europe and Asia Pacific. For more information, please visit www.aresmgmt.com
Ares Private Equity Group
The Ares Private Equity Group had approximately $27.4 billion of assets under management and more than 110 investment professionals, as of December 31, 2020. The private equity professionals have a demonstrated ability to deploy flexible capital, which allows them to stay both active and disciplined in various market environments.
Crescent Capital Group LP
Crescent Capital Group is headquartered in Los Angeles with offices in Boston, London, and New York. With more than 85 investment professionals and approximately 180 employees, the firm invests at all levels of the capital structure, with a significant focus on below investment grade credit through strategies that invest in senior bank loans, unitranche loans, high yield debt, mezzanine debt, and other private debt securities. As of December 31, 2020, Crescent Capital Group managed approximately $30 billion, with a relatively equal split between marketable securities and privately originated debt investments. For more information about Crescent Capital Group, visit www.crescentcap.com.
Savers®
As one of the world's largest thrift retailers for bargain priced pre-owned clothing, accessories and household goods, our mission is to champion reuse and inspire a future where shopping secondhand is second nature. Learn more about the Savers family of thrift stores, our impact and the #ThriftProud movement at www.savers.com/thrift-proud/impact.
We are a for-profit company that champions reuse. Shopping in our stores does not support any nonprofit, but donating reusable goods to a nonprofit we partner with does. We pay nonprofits for clothing and household items, helping them fund programs in local communities. TVI, Inc. is a registered professional fundraiser where required. Learn more
SOURCE Savers, Inc.
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