Berkshire Partners: Bidding for Carters Essay

6254 Words Dec 26th, 2015 26 Pages
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REV: AUGUST 19, 2011

MALCOLM BAKER
JAMES QUINN

Ber rkshire Partne Bid e ers: dding f Cart for ter’s
In the spring of 2001, Bost o ton-based pri ivate equity firm Berkshi Partners w consider ire was ring a levera aged buyout (LBO) of the William Cart Co., a lead ter ding producer of infant, ba r aby, and child dren’s appar in the Un rel nited States. Berkshire Par
B
rtners, which had extensi h ive experienc investing i the ce in retail and manufac cturing sector was initia drawn to Carter’s bec rs, ally o cause of the s strong brand name ngth of the s the co ompany had developed during its 136 d 6-year history as well as for the stren y, s senior mana agement team (See Exhibit 1
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Berkshire Partners: Bidding for Carter's

clothing.”2 Rowan arrived with 39 years of experience in the industry, most recently running the
Bassett-Walker and Lee Jeans division of VF Corporation. Many members of his executive team were also former managers with VF Corporation.
With a strategy of simplifying Carter’s products, Rowan and his team returned to producing what they called “high-volume, basic apparel.” Product design remained relatively consistent from year to year: About two-thirds of the apparel was carried forward from season to season with the same fabric and construction, varying only through color

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