Benzinga | Mar 25, 2021 09:06AM EDT

Savers Reports Deal With Funds Managed By Private Equity Group Of Ares Mgmt. For Ares To Purchase Full Ownership Interest Of Global Thrift Retailer From Funds Managed By Crescent Capital, No Terms Disclosed

Savers(r) (the "Company") announced today that is has entered into a definitive purchase and sale agreement with funds managed by the Private Equity Group of Ares Management Corporation (NYSE:ARES) ("Ares"). Ares, which is currently a minority owner of the Company, will acquire full ownership interest of the global thrift retailer from funds managed by Crescent Capital Group, LP, which will sell their majority position in the Company as part of the transaction. Terms of the agreement were not disclosed. The closing of the transaction is subject to customary closing conditions.



Since its founding in 1954, Savers(r) has paved the way for today's thrift movement, offering a wide selection of pre-owned clothing, accessories and household goods that are affordable, sustainable and stylish. With more than 21,000 team members and nearly 300 stores throughout North America and Australia, the Company is one of the largest for-profit thrift retailers in the world. Savers is leading one of the fastest-growing retail categories, delivering strong operating performance and consistent sales growth averaging $1.2 billion in annual revenue.

"Ares is excited to support Savers as we transition to its next phase of growth," said Scott Graves, Partner and Co-Head of the Ares Private Equity Group. "The Company's value proposition to customers, strength of charitable partner relationships, and positive impact on the environment make it well-positioned to capitalize on the growing demand for pre-owned goods."

"We believe Savers will continue to be at the forefront of promoting sustainability in retail," added Aaron Rosen, Partner in the Ares Private Equity Group. "We are proud to support the Company's CEO Mark Walsh and all members of the Savers team as they continue to lead in this regard."

"We look forward to continuing our partnership with Ares and leveraging our sponsor's resources to build on our momentum as a brand, grow our loyal customer base, and accelerate strategic initiatives that are expected to revolutionize the thrift industry," said Mark Walsh. "Ares' further investment and belief in the strength of our differentiated business model will help advance our mission to provide sustainable style at a savings, and make a lasting impact on communities and the planet."

"We have enjoyed working with Mark Walsh and the Savers executive team to build and further strengthen the Company's positioning as the market leader in thrift retailing over the course of our ownership as it continues on its growth objectives," said Chris Wright, Managing Director and Head of Private Markets at Crescent Capital. "We have been proud to work alongside a team so committed to the promotion of reuse and sustainability."

For decades, Savers has advocated for a more circular and sustainable future by extending the life cycle of pre-owned goods. On average, the Company diverts more than 700 million pounds of reusable clothing and textiles from landfills each year. Currently, less than 1 percent of used clothing can be "recycled" into new garments, making reuse even more important as the fashion industry is the leading contributor to pollution and the second-largest consumer of water worldwide. As shoppers consider the impact of their own clothing footprint, they are more likely than ever to shop thrift.