Middle Market Deal of the Year: L Catterton built parents’ trust in Zarbee’s Naturals

Why they won: 9.7x multiple and 43% IRR, revenue increased 15x over a seven-year hold

When L Catterton in 2011 acquired a majority of Zarbee’s Naturals, it bet it could build a new growth category that took advantage of long-term consumer trends around brand authenticity, health and wellness, and investing in children’s products.

When it sold the company to Johnson & Johnson Consumer in 2018, after expanding Zarbee’s from a line of honey-based children’s cough syrup into a market-leading provider of natural over-the-counter products, that bet paid off – to the tune of a 9.7x gross multiple and a 43 percent IRR.

L Catterton co-CEO Scott Dahnke said the deal reminded him of a quote from the 1980s TV show “The A-Team”: “I love it when a plan comes together.”

Check out the full article, as published by Buyouts: https://bit.ly/2Xj4ebK

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