CPPIB acquires assets of J.W. Childs Equity Partners III

April 21
13:12 2014

Canada Pension Plan Investment Board (CPPIB) has completed a US $596 million secondary transaction related to J.W. Childs Equity Partners III, a $1.9 billion vintage 2002 fund. CPPIB invested $477 million in the transaction.

J.W. Childs Equity Partners III’s active portfolio companies include Esselte, Mattress Firm Holding Corp. (NASDAQ: MFRM), SimCom Training Centers, Sunny Delight Beverages Co., and WS Packaging Group, Inc. These assets will be transferred to a new vehicle. J.W. Childs Associates will continue as the general partner and manage the partnership.

The transaction provided the option, but not the obligation, for all existing limited partners in Fund III to obtain liquidity. Alternatively, the existing limited partners were provided the opportunity to roll their existing stakes on the same terms and conditions as CPPIB.

CPPIB has also agreed to commit US $119 million to JW Childs Equity Partners IV, a new fund targeting US $450 million in capital commitments from investors.

Boston based J.W. Childs Associates focuses primarily on mid-market investments in the consumer products, specialty retail and healthcare services sectors across North America.

“We are excited to complete another significant and innovative transaction in the secondary private equity market,” said Andr√© Bourbonnais, SVP of Private Investments, CPPIB. “We believe these transactions are a positive evolution in the private equity industry. In all transactions, we aim to provide a fair and balanced solution to meet the objectives of all the existing limited partners, the general partner and new investors. We look forward to partnering with JW Childs in creating value over the long term.”

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