Toms sells stake to Bain Capital to “accelerate growth”

Toms, the canvas shoe company that operates a One-for-One policy to give shoes to children in need, has agreed to sell a 50 percent stake in its business to private investment firm Bain Capital. The deal will see Toms founder Blake Mycoskie continuing as the “visionary of the company”

and remaining the 50 percent owner of Toms. The shoemaker stated that the investment was needed to not only accelerate the growth of the company, but also to increase the scale of its One-for-One movement.

Financial terms of the private transaction were not disclosed, but a report by Bloomberg says that the deal is thought to have valued the eight year old footwear brand at about 625 million dollars, including debt.

"T

his partnership will enable Toms to grow faster and give to more people in more ways than we could otherwise," said Mycoskie. "In eight short years, we've had incredible success, and now we need a strategic partner who shares our bold vision for the future and can help us realize it.”

Mycoskie added: “We're thrilled that Bain Capital is fully aligned with our commitment to One for One, and clearly they have the expertise to help us improve our business and further expand the scale of our mission."

Toms sells 50 percent stake to Bain Capital

Mycoskie founded Toms after travelling to Argentina in 2006 and finding that many of the children in the village he was visiting had no shoes. Since then the LA-based company has given over 25 million new pairs of shoes to children in need and helped restore sight to more than 250,000 people. In addition to its shoes and eyewear, the Toms Roasting Co. also donated one week of clean water to a person in need for every bag of coffee purchased.

The deal might be making Mycoskie rich, but the ‘chief shoe giver’ has announced that he plans to give away at least half of his profits from the transaction by establishing a fund that identifies and supports social entrepreneurship and other causes to which he and his wife, Heather, are deeply committed. Bain Capital has also showed their giving nature by confirming that they will match Mycoskie’s investment in the new charitable endeavour.

Commenting on the partnership, Bain Capital principal, Ryan Cotton, said: "Toms is synonymous with social responsibility and corporate impact and has demonstrated the power of being an authentic, mission-driven organisation.

"We are extremely excited to partner with Blake Mycoskie to support the continued growth of the business and the expansion of the Toms mission. As a firm and as individuals, we are strongly aligned with the principles of the One for One movement and its contribution to the global community."

Bain’s investment will help Toms expand its distribution in Europe and Asia as well as in America, which includes increasing the chain’s retail stores from the current two locations. It is also thought that Bain’s has plans to help Toms expand its product lines in offerings like apparel and household items.

Images: Toms