Bain Capital appoints advisers for Bugaboo exit

The process is expected to launch in 2H22, said one of the sources and a sector banker following the situation.

Bain Capital is working off c.EUR 50m EBITDA for the company, one of the sources, an additional source and the sector banker following the situation said.

The private equity firm has owned Bugaboo since 2018, when it backed a buyout from founders Max Barenbrug and Eduard Zanen for an undisclosed sum.

Bain Capital declined to comment. Bugaboo, Baird and Barclays did not respond to requests for comment.

Bugaboo’s selling points include its improved performance following operational polishing, said one of the sources. As part of an efficiency drive, Bugaboo has shuttered its underperforming luggage systems arm, an additional source and two further bankers following the situation noted.

Bain will likely tout Bugaboo as a growth story amid predictions that the reducing impact of COVID-19 may fuel a baby boom, one of the sources and one of the bankers said.

Bugaboo makes a natural buyout candidate, one of the sources said. A new sponsor could further strengthen the company operationally, diversify its offering and accelerate rollout, he said.

Yet finding a new shareholder for Bugaboo is "not easy and straightforward", said one of the bankers. Macroeconomic uncertainty is expected to hit discretionary spending on consumer products, one of the sources, an additional source and an additional banker said. Bugaboo, as a premium brand, is especially susceptible to experience a fall in demand, one of the sources said.

Bugaboo’s prams include the all-terrain Fox 3 and the compact Butterfly. Other products include car seats and parasols.

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