Orchard International Inc.

Completed Date

2019-03-29

Sector

Consumer

Deal Type

Company sales

Value

Not disclosed

Company bio

Headquartered in Toronto, Orchard International is a full service, custom product development and manufacturing company active across the color, skincare, haircare, cosmetics brushes and tools & accessories segments, with clients including brands such as Sephora and Macy’s.

Deal Summary

FirePower Capital advised Orchard International on its sale to Albea Group, a public-traded company headquartered in France.

Value Added to the Project

The owners were a husband and wife team who, after starting the business in their kitchen, had built and run the company for 22 years and were ready for retirement. FirePower’s independence, personalized approach, and track record appealed to the owners, and they engaged the M&A Advisory team to sell their company, stipulating that a buyer would need to embrace Orchard’s culture and values, and support the current management team.

With the owners’ objectives at top of mind, the FirePower team compiled a global list of potential buyers. It became clear through the process that a strategic buyer would better understand the value Orchard offered. After extensive outreach, the team identified a French strategic focused on driving growth in North America. The French firm presented an initial offer, and FirePower’s team subsequently guided negotiations and discussions addressing price, structure and terms, while also ensuring the buyer’s go-forward plan matched with the owners’ vision for Orchard.

FirePower’s team managed a complex due diligence process (as Orchard owned two Chinese subsidiaries), that involved educating the buyer on Orchard's dozens of global suppliers and stakeholders. When the transaction subsequently closed, it was on terms and at a price that were clearly aligned with the owners’ expectations and delivered the Company to a buyer with plans to continue to engage and challenge the Orchard management and employee group.

Deal Contacts

Somant Maraj

FirePower Capital is the exclusive Canadian partner of Mergers Alliance

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