GREENVILLE, Wis., Sept. 15, 2020 /PRNewswire/ -- School
Specialty, Inc., a leading provider of educational products and
services to the Pre-K- 12th grade market in the U.S. and
Canada., today announced that
substantially all its assets have been acquired by SSI Acquisition,
LLC, an entity formed by TCW Asset Management Company, LLC,
Cerberus Capital Management, and Lantern Capital
Partners. Post-closing, the company will operate as School
Specialty, LLC. In conjunction with the transaction,
Ryan M. Bohr was named President and
Chief Executive Officer having served as the Company's Chief
Operating Officer since 2017 and Chief Financial Officer from 2014
to 2017.
Ryan M. Bohr stated, "While it
has certainly been a challenging road to get to this point, this
transaction is the best outcome we could have expected,
particularly in the face of the challenging market conditions
brought on by the COVID-19 pandemic." Mr. Bohr further stated,
"The transaction not only keeps our business fully intact but
restructures our balance sheet in a manner that materially reduces
our debt and greatly increases the capital resources available to
our Company. The investment groups sponsoring this transaction
have been involved in our business since 2017 and have a strong
appreciation for not only the uniqueness of School Specialty's
value proposition, but also our strong market position and growth
potential. Our entire organization appreciates the support they
have provided, and we look forward to working with them as we
pursue our strategic growth initiatives." The TCW Group's
Mark Gertzof commented, "TCW and our
investment partners look forward to working with the School
Specialty team and seeing the business operate from a position of
strength as a well-capitalized company." Mr. Gertzof
continued, "We strongly support the management team's vision for
the future of School Specialty and are excited to be their partner
as they make that vision a reality."
Mr. Bohr concluded, "With the transaction behind us, we can
intensify our focus on finishing 2020 strong and supporting our
customers as the new school year begins. After weathering a
sharp pull-back in March and April as school systems rapidly
switched to remote learning, we have seen our order volumes
steadily improve as schools finalized their back-to-school plans
and gained a better understanding of the unique requirements they
would have to support those plans. Fortunately, our strong
customer relationships, subject matter expertise and deep product
assortment and capabilities have enabled us to support
administrators and educators across the country during these unique
times. As we enter the final months of 2020, while the mix of
product and curriculum sales may be different, sales have generally
returned to normal levels for this time of year."
About School Specialty
School Specialty is a leading
provider of educational products and services to the Pre-K-
12th grade market in the U.S. and Canada. The company designs, manufactures and
distributes a broad assortment of furniture & equipment,
educational technology, general and specialty classroom supplies,
facility supplies, safety and security products, and core and
supplemental curriculum for science, math and English language
arts. These include trusted national brands, as well as
well-recognized proprietary brands, like Sax art products,
Childcraft furniture and FOSS Science Curriculum. School Specialty
also provides expert guidance, design services and professional
development within the categories it supports. At its core, School
Specialty is a purpose-driven organization. Everything offered,
from crayons to curriculum to complete learning environments, is
designed to support educators, raise student outcomes and
ultimately, transform more than classrooms.
School Specialty serves the U.S. and Canada through a
comprehensive network of distribution centers powered by a
multi-channel approach. For more information,
visit https://corporate.schoolspecialty.com/ or connect
with us on Facebook, Twitter, Instagram, and Pinterest. Find ideas,
resources and inspiration by visiting our
blog: https://blog.schoolspecialty.com/.
About The TCW Group, Inc
TCW is a leading global asset
management firm with a broad range of products across fixed income,
equities, emerging markets and alternative investments. With more
than four decades of investment experience, TCW today manages
approximately $225 billion in client
assets. Through the MetWest Funds and TCW Funds families, TCW
manages one of the largest mutual fund complexes in the
U.S. TCW's clients include many of the world's largest
corporate and public pension plans, financial institutions,
endowments and foundations, as well as financial advisors and high
net worth individuals. For more information, please visit
www.tcw.com.
About Cerberus
Founded in 1992, Cerberus is a global
leader in alternative investing with over $45 billion in assets across complementary
credit, private equity, and real estate strategies. We invest
across the capital structure where our integrated investment
platforms and proprietary operating capabilities create an edge to
improve performance and drive long-term value. Our tenured teams
have experience working collaboratively across asset classes,
sectors, and geographies to seek strong risk-adjusted returns for
our investors. For more information about our people and platforms,
visit us at www.cerberus.com.
About Lantern Capital Partners
Lantern is a special
situations merchant bank that provides a combination of tailored
capital solutions and restructuring expertise to companies and
their stakeholders in times of distress across all market
conditions. Our reputation and brand are based on a passion and
commitment to leaving companies better than we found them as a
constructive partner of choice for more than 20 years. For
more information, please visit www.lanternam.com.
Additional Information
School Specialty, Inc. was advised on the transaction by Mayer
Brown LLP and Godfrey & Kahn, S.C. The wind-down and
dissolution of School Specialty, Inc., to address any assets not
acquired or liabilities not assumed as part of the transaction
described above, will be managed by Ocean Ridge Capital Advisors.
Any inquiries relating thereto should be directed to Mr.
Brad Scher at (914) 235-1075.
Contact:
Stacey Rubin, SVP Marketing
Stacey.rubin@schoolspecialty.com
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SOURCE School Specialty