JUVENILE PRODUCTS TRENDING UPWARDS, TECH-ENABLED SAFETY PRODUCTS IN HIGH DEMAND - JUVENILE PRODUCTS & TOYS INDUSTRY UPDATE | MAY 2021
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JUVENILE PRODUCTS TRENDING UPWARDS, TECH-
ENABLED SAFETY PRODUCTS IN HIGH DEMAND
JUVENILE PRODUCTS & TOYS INDUSTRY UPDATE | MAY 2021
3
TABLE OF CONTENTS
Key Industry Takeaways 4
Industry Outlook 5
M&A Surges from COVID-19
Low, Fueled by Private Equity 6
Notable Transactions 7
Juvenile Products’ Deal of
the Month 8
Venture Capital &
Deal Activity 9
Select Transactions 10
Public Company Data 11
Report Contributors 12
Firm Track Record 13
Endnotes 14
CONTACT OUR JUVENILE PRODUCTS &
TOYS INDUSTRY EXPERT
Sophea Chau
Managing Director
617-619-3307
schau@capstonepartners.com
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Juvenile Products & Toys Industry
Sector Trending Upwards, Tech-enabled Safety Products
In High Demand
KEY INDUSTRY TAKEAWAYS
Capstone Partners’ Consumer Investment Banking Group is pleased to share its Juvenile Products & Toys
industry update. Through our ongoing conversations with active industry players and analysis of key trends
we have provided an assessment and outlook for industry performance and consolidation activity, with
optimism supported by a recent rebound in deal volume. We have identified several key takeaways including:
1. Premium multiples are being paid for category leaders with multichannel distribution, robust customer
retention, and demonstrated sales growth.
2. Demand in the Juvenile Products & Toys industry has elevated, evidenced by increases in year-over-
year (YOY) sales.
3. Innovative tech-enabled infant monitoring solutions have garnered heightened market attention.
4. Merger and acquisition (M&A) activity has improved year-to-date (YTD) as strategics and private
equity (PE) are actively targeting the sector.
5. Top public companies have traded at elevated EBITDA multiples and recorded strong revenue growth,
which bodes well for M&A transaction valuations.
6. Capstone expects healthy M&A activity in 2021 as business owners capitalize on favorable market
trends and look to transact ahead of potential negative tax legislation.
Capstone Partners has developed a full suite of corporate finance solutions, including M&A advisory, debt
advisory, financial advisory, and equity capital financing to help privately owned businesses and private equity
firms through each stage of the company’s lifecycle, ranging from growth to an ultimate exit transaction.
To learn more about Capstone’s wide range of advisory services and Juvenile Products & Toys industry
expertise, please contact Capstone Managing Director Sophea Chau.
4
Juvenile Products & Toys | May 2021
INDUSTRY OUTLOOK
The Juvenile Products & Toys industry has Safety Products Lead in YOY Sales Growth
demonstrated notable resilience amid a U.S. Safety products’ dollar sales increased 35% year-over-
challenging retail environment, evidenced by the year in 2020, with total category revenue of $587 million,
16% YOY increase in toy sales, according to NPD.1 outpacing all other juvenile products categories.
While sales during the onset of the pandemic
Safety 35%
remained in line with the previous year, prolonged
lockdown measures and federal stimulus checks Furniture 17%
prompted consumers to increasingly purchase
Entertainment 13%
products and toys from trusted, quality brands.
The uptick in spending was most pronounced Mobility Furniture 10%
leading up to the holiday season, with October toy Bed Bath 8%
sales increasing 33% YOY. In addition, leading
industry participants have experienced robust Feeding 5%
performance through Q4 2020, with Hasbro 0% 10% 20% 30% 40%
(Nasdaq:HAS) and Mattel (Nasdaq:MAT) recording
Year-over-Year Sales Growth
Q4 net revenue growth of 4% and 10%,
Source: NPD
respectively, according to their most recent
earnings releases.2,3 Multichannel product segment. Notably, Owlet Baby Care, producer of
distribution has remained a key revenue driver for connected infant monitoring products, has
industry participants, with heightened focus on announced plans to merge with a special purpose
e-commerce capabilities. Notably, Hasbro’s e- acquisition company (SPAC) formed by
commerce revenues increased 43% from the prior SandBridge Capital and PIMCO funds (more details
year, contributing to over $1 billion in sales. on page six). The transaction values Owlet at an
enterprise value of $1.1 billion, equivalent to 6.2x
Juvenile safety products emerged as a leading 2022 expected net revenue, according to Owlet’s
product category in 2020, with sales growth investor presentation.6 The elevated revenue
increasing 35% YOY to outpace all other segments, multiple highlights the premium buyers are placing
according to NPD.4 While traditional safety- on connected, digital child rearing devices and the
oriented durable goods have experienced strong associated favorable long-term growth prospects.
consumer demand, tech-enabled infant safety In addition, Nanit, developer of wearable baby
products have garnered heightened consumer sleep trackers, raised nearly $25 million of venture
attraction and investor appetite. Connected funding in February in a Series C round led by GV.
monitoring devices that provide analytics on infant The transaction follows its May 2020 funding
sleep patterns have witnessed increased adoption round of $21 million, contributing to a total of $76.5
by parents, lending to a projected $1.8 billion Smart million in venture funding raised. As demand
Baby Monitor market size by 2026, according to persists for tech-enabled juvenile safety products,
Data Bridge Market Research.5 industry participants that have demonstrated
robust performance are poised to attract
Institutional investors have also taken note, heightened buyer interest as M&A markets
allocating increased capital to the high-growth intensify in 2021.
allocating
Sophea Chau
Managing Director
“The fundamental characteristics of the Juvenile Products & Toys industry have always
drawn strong M&A interest to the sector. Now that the industry has proven its resiliency
during the pandemic, quality companies can expect increased attention from buyers who
are willing to pay premium valuations for growth-oriented businesses with strong brands.”
5
Juvenile Products & Toys | May 2021
M&A SURGES FROM COVID-19 LOW, FUELED BY PRIVATE EQUITY
M&A activity stalled significantly in Q2 and Q3 as consolidation efforts were paused amid heightened COVID-
induced market uncertainty, resulting in a 23% YOY decline in volume in 2020. However, as industry participants
have regained revenue visibility and buyers reassess growth strategies, transaction activity has improved with YTD
transaction volume outpacing 2020 and 2019 levels with 15 deals announced or completed. The swift uptick in
consolidation activity has echoed across all industries in the middle market. Notably, following Q4, which
experienced the highest quarterly transaction volume since 2017, Q1 M&A activity has remained robust as pent-up
demand and heightened valuations have fueled deal making.
The elevated deal volume at the end of 2020 and into 2021 has been supported by the resumption of previously
paused deals in conjunction with new sellers revisiting the market and private equity reengaging in portfolio
enhancement. In addition, potential tax changes imposed by the new presidential administration have pushed
sellers to transact ahead of any negative impact to capital gains treatment. Improving credit markets, elevated
buyer interest, and upward trending valuations have provided a favorable M&A market for industry participants
that have demonstrated category leadership and customer retention. Noting the strength of the M&A market,
Capstone Managing Director Sophea Chau commented, “We have received excellent reception from the Juvenile
Products deals that we currently have in market.”
Private equity has maintained a robust interest in the Juvenile Products & Toys space (29% of 2020 and YTD 2021
transactions), utilizing add-on acquisitions to bolster their Durable Goods and Toys portfolios. Notably, Mason
Wells-backed Buffalo Games, the largest producer of jigsaw puzzles in the U.S., acquired Massachusetts-based
Ceaco and its contract manufacturer Edaron in November 2020 for an undisclosed amount. In addition, direct-to-
consumer focused brands with robust e-commerce capabilities have attracted private equity investment,
evidenced by Paladino Capital’s acquisition of Zoe Strollers (November 2020, undisclosed). Online penetration
has proved to be a critical component of revenue generation throughout the COVID-19 pandemic, with the Baby
Products sector experiencing a 50% increase in online sales since March, according to a press release.7
Year-to-Date M&A Volume Surges Private Strategics Active, PE Remains Engaged
Deal volume slowed in Q2 and Q3 although Private strategic buyers led deal activity in 2020
M&A activity has improved substantially in and YTD 2021, while private equity firms have
Q4 and year-to-date 2021 as buyers have continued to utilize M&A to build and enhance
returned to the market. sector portfolios.
2019 2020 2021
25
Number of Transactions
20 STRATEGIC 15.8% 10.5%
15 Public
15 Private
10 10 10 FINANCIAL
13.2%
9
10 8
7 7 Direct
5 Add-on
4
5
2
60.5%
0
Q1 Q2 Q3 Q4 YTD
Year-to-date ended April 28
Source: Capital IQ, Factset, PitchBook, and Capstone Research Source: Capital IQ, Factset, PitchBook, and Capstone Research
6
Juvenile Products & Toys | May 2021
NOTABLE TRANSACTIONS
Valuations of public Juvenile Products & Toys providers have trended higher, which typically bodes well for
M&A markets. Top industry participants have experienced strong growth in EBITDA multiples YOY, with
Hasbro, Newell Brands (Nasdaq:NWL), TOMY (TSE:7867) and Spin Master (TSX:TOY) experiencing elevated
valuations. While EBITDA multiples for Mattel have declined slightly compared to the prior year, its operating
results have remained healthy, with total EBITDA increasing 59% YOY. M&A markets have followed suit, with
leading brands offering innovative products and multichannel distribution garnering heightened multiples. This
has been evidenced by TOMY’s acquisition of leading developer, marketer, and seller of children’s toys, games,
and gifts, Fat Brain Holdings, for an enterprise value of $41 million and equivalent to 14.6x EBITDA.
Thrive International has acquired baby products provider LÍLLÉbaby for an undisclosed
sum (January 2021). LÍLLÉbaby offers a wide selection of baby carriers with a focus on
Thrive comfort and function, sold through retail stores and its e-commerce platform. The
International acquisition highlights Thrive’s growth initiatives in the Juvenile Products market, having
acquired lifestyle baby brands Moby Wrap and Petunia Pickle Bottom in November 2019
(undisclosed). LÍLLÉbaby will leverage Thrive’s industry expertise and international
Acquires presence to bolster product development and geographic reach.
"We are excited to welcome the LÍLLÉbaby brand as the latest addition to our growing
brand lineup. LÍLLÉbaby's innovative products will bolster Thrive's continued growth, as
key personnel of LÍLLÉbaby will be joining Thrive's best-in-class management team. Thrive
is an energetic and growing company with dynamic brands that enable us to achieve
multi-channel global business across stores and e-commerce,” commented Ian Schaffer,
Thrive's CEO, in a press release.8
TOMY International, subsidiary of TOMY Company, has acquired premier developer,
marketer, and distributor of children’s toys, games, and gifts, Fat Brain Toys, for an
enterprise value of $41 million and equivalent to 1.0x revenue and 14.6x EBITDA (October
2020). Fat Brain Toys is a branded juvenile products provider offering STEM toys, outdoor
toys, puzzles, and games. It operates through a direct-to-consumer platform and also sells
its products in retail locations, offering next day in-store pickup of online orders.
Acquires
The premium multiple obtained by Fat Brain highlights the strong demand for innovative
toy and games providers with category leadership offering multichannel distribution.
“Since its launch as a direct-to-consumer brand over 17 years ago, Fat Brain has continued
to grow by staying focused on developing and selling innovative children toy and game
products through a multi-channel distribution network, while always keeping consumers at
the center of everything they do,” commented Pete Henseler, President of TOMY in a
company press release.9
Sophea Chau
Managing Director
“Valuations are at all time highs for companies with tremendous brand equity, as
demonstrated by strong customer loyalty trends, category leadership, and robust supply
chain operations. Companies with these characteristics are in a prime position in this
“seller’s market”, especially if they want to get ahead of the increase in capital gains tax
next year.”
7
Juvenile Products & Toys | May 2021
JUVENILE PRODUCTS’ DEAL OF THE MONTH
Founded: 2012
Headquartered: Lehi, UT
Total Funding Raised: $187.5 million
2019 Net Revenue: $49.8 million
Company Description
Owlet Baby Care is a provider of connected infant monitoring products including the Owlet Smart Sock, a
device using pulse oximetry to track oxygen levels and heart rate during sleep. In addition, its product
portfolio includes a smart high-definition video baby monitor which can be paired with the Owlet Smart Sock,
providing an application interface for parents. Demand for innovative monitoring products has elevated
significantly, evidenced by Owlets’ announcement to merge with Sandbridge Acquisition Corporation, a SPAC,
backed by Sandbridge Capital and PIMCO funds. The transaction values Owlet at an enterprise value of $1.1
billion equivalent to 6.2x 2022 expected net revenue, according to its investor presentation. The deal is
expected to close during Q2 2021, with Owlet gaining public listing on the New York Stock Exchange.
Owlet touches several attractive sectors, including Digital Health & Medical Technology, Consumer
Technology, Health & Wellness, and High Growth Consumer. High demand and favorable industry tailwinds
have contributed to strong operating result forecasts, with YOY net revenue growth of 83.1% expected by
2025. Owlet plans to expand its connected nursery footprint in addition to investment in clinical research
and FDA marketing to increasingly penetrate the Telehealth market. The new infusion of capital is also
expected to be invested to bolster its software and services platform, fuel acquisition growth, enhance
customer acquisition, and expand internationally.
"The long-term vision of the company has always been to keep babies and their families safe and healthy. We
have the largest data set of infant health and sleep that is driving our ecosystem engine and plan to expand
both in product and software services, including tele-health integrations in the platform, which we believe
consumers are seeking due to changing behaviors in remote care as a result of COVID-19,“ commented Kurt
Workman, CEO and founder of Owlet in a press release.10
$1.07B 6.2x $107.2M $81B 1.31%
Enterprise EV / 2022E Net Expected 2021 Parenting TAM TAM
Value Revenue Net Revenue Size by 2025 Penetration
The SPAC Owlet has The company The growing Owlet expects to
transaction values commanded an forecasts $107.2 Parenting total continue to capture
Owlet at an elevated valuation at million in net revenue addressable market an increased share
enterprise value of 6.2x 2020E net by 2021, representing (TAM) for Owlet of its total
$1.07 billion, revenue, fueled by a 42.6% year-over- bodes well for addressable market,
highlighting the attractive future year growth rate. robust near-term elevating to 1.31%
demand for growth prospects. revenue capture. penetration by
connected infant 2025.
monitoring solutions.
8Juvenile Products & Toys | May 2021
VENTURE CAPITAL & DEAL ACTIVITY
Venture Funding Drawn to $250
Tech-Enabled Child
Monitoring Devices $187.5 Owlet has emerged as a market
$200
leader, setting precedent for the
type of investment tech-enabled
Venture capital funding $ in Millions $150 safety products can draw.
has increasingly been
deployed to innovative $100 $76.6
monitoring providers,
most notably evidenced
$50 $28.7
by Owlet’s recent SPAC
transaction, valuing the $6.6 $3.0 $2.3
company at an $0
enterprise value of $1.1
billion.
Source: PitchBook and Capstone Research
Merger and Acquisition 70
Volume Improves in
Year-to-Date 60
M&A volume is expected to
Number of Transactions
50 continue at a rapid pace as
M&A volume declined business owners are keenly aware
by approximately 23% in 38 38
of potential tax implications.
40 34
2020 year-over-year, 32 30
although transaction 30
activity has accelerated 23
in Q4 and into year-to- 20 15
date 2021 as buyers 9
have returned to the 10
market and sellers are
operating with greater 0
financial footing. 2015 2016 2017 2018 2019 2020 YTD 2020 YTD 2021
Year-to-date ended April 28
Source: Capital IQ, FactSet, PitchBook, and Capstone Research
Private Public PE Platform PE Add-On
Private Equity Increasingly
Employs Add-On
100%
Acquisitions in 2020 15.8% 16.7%
Percentage of Transactions
21.9% 21.7%
28.9% 29.4%
Private equity firms have 80%
9.4% 13.3% 8.7%
continued to demonstrate 28.9%
10.5% 12.5% 13.0%
strong interest in the 60% 20.6% 20.0%
13.2%
industry, primarily utilizing 10.5%
11.8%
add-on acquisitions to 40%
enhance sector portfolios 56.3% 56.5%
44.7% 47.4% 50.0%
especially in the Durable 20% 38.2%
Goods and Toys
subsegments. 0%
2015 2016 2017 2018 2019 2020
Source: Capital IQ, FactSet, PitchBook, and Capstone Research
9Juvenile Products & Toys | May 2021
SELECT TRANSACTIONS
Enterprise EV / LTM
Date Target Acquirer Target Business Description Value (mm) Revenue EBITDA
Provides diaper bags, toys, pacifiers, baby covers, and
04/22/21 Quintessential Tots TZP - - -
other products.
Peekaboo Beans
04/08/21 Les Petits Terribles Offers healthy snacks and quick meals for children. - - -
(CNSX:BEAN)
Sun-Maid Growers Produces organic food products for babies, toddlers,
03/31/21 Plum - - -
of California kids, and mothers.
03/15/21 Tru Kids WHP Global Operates toys stores in New Jersey. - - -
Sprout Neptune Wellness
02/10/21 Offers packaged organic baby food. $57.1 2.0x -
Foods (TSX:NEPT)
Designs and manufactures baby carriers, toddler
01/21/21 LÍLLÉbaby Thrive International carriers, and accessories. - - -
Baby Gourmet
01/18/21 Hero Group Produced packaged organic food for babies and kids. - - -
Foods
Nutritional Growth
12/17/20 KidzShake Provides vegan plant-based nutrition shakes for kids. - - -
(ASX:NGS)
Provides body care, sun care, and baby
12/13/20 Think Operations Topix care products. - - -
Buffalo
11/16/20 Ceaco Offers jigsaw puzzles for family entertainment. - - -
Games
Paladino Designs and manufactures strollers, baby
11/13/20 ZOE Baby Products furniture, and accessories. - - -
Capital
Optimum
11/12/20 Flat River Distributes toys, games, and other products. - - -
Fulfillment
10/30/20 Cortex Toys Mighty Mojo Manufactures and sells toys and games. - - -
10/18/20 Fat Brain TOMY International Provides toys, games, and gifts. $41.0 1.0x 14.6x
Manufactures and distributes compostable diapers
10/15/20 Earth Baby DYPER and wipes. - - -
Big Blue Enad Global 7 Develops video games and mobile games including
08/27/20 $57.8 6.3x 21.7x
Bubble (OM:EG7) mobile games for kids.
Out There Provides toys, foam sports balls, education activity kits,
07/28/20 Alex Brands - - -
First and other products for toddler, infants, and children.
Offers a glove for children that makes bubbles when
05/01/20 Glove-A-Bubbles ZURU Toys dipped in soap. - - -
Manufactures a hands-free bottle holder for
04/30/20 Better Family Swabbies - - -
feeding babies.
04/01/20 Kelly Toys Jazwares Manufactures and distributes toys. - - -
Services of Tot Comprises the cleaning and repair services
03/31/20 BabyQuip business of baby gear. - - -
Squad
Provides organic food and snacking products
03/24/20 First Start Grays Peak for babies, toddlers, and little kids. - - -
Manufactures sleeping products and accessories for
02/21/20 Cloud B Pearl 33 children including blankets and sleeping bags. - - -
Source: Capital IQ, PitchBook, FactSet, and Capstone Research
10Juvenile Products & Toys | May 2021
PUBLIC COMPANY DATA
Price % 52 Wk Market Enterprise LTM EV / LTM
Company 04/27/21 High Cap Value Revenue EBITDA Margin Revenue EBITDA
Crown Crafts, Inc. $7.75 92.3% $77.4 $80.6 $77.6 $12.9 16.6% 1.0x 6.3x
Dorel Industries Inc. $10.29 78.0% $333.7 $925.2 $2,762.5 $189.4 6.9% 0.3x 4.9x
Hasbro, Inc. $98.35 97.1% $13,528.9 $16,954.3 $5,474.6 $1,041.1 19.0% 3.1x 16.3x
JAKKS Pacific, Inc. $7.36 51.1% $41.0 $139.2 $515.9 $36.7 7.1% 0.3x 3.8x
Mattel, Inc. $21.80 93.5% $7,603.3 $10,082.4 $4,863.8 $924.2 19.0% 2.1x 10.9x
Newell Brands Inc. $26.92 98.1% $11,449.9 $16,804.9 $9,385.0 $1,422.0 15.2% 1.8x 11.8x
Spin Master Corp. $33.33 97.3% $3,401.2 $3,148.3 $1,570.6 $121.2 7.7% 2.0x 26.0x
Summer Infant, Inc. $16.40 68.3% $35.0 $69.9 $155.3 $8.9 5.7% 0.5x 7.8x
TOMY Company, Ltd. $8.56 84.6% $801.4 $725.7 $1,389.2 $133.8 9.6% 0.5x 5.4x
Mean 11.9% 1.3x 10.4x
EV = enterprise value; LTM = last twelve months Median 9.6% 1.0x 7.8x
$ in millions, except per share data
NM = Not Meaningful Harmonic Mean 9.7% 0.7x 7.4x
Last Twelve-Month EBITDA Multiple Performance
2020 2021
30x 26.0x
25x
EV/EBITDA
20x 16.3x
15x 12.2x 11.8x
10.9x 10.9x 11.4x
9.9x
10x 6.3x 8.4x 7.8x
4.9x 4.9x 5.8x 5.4x
4.5x 3.8x 4.1x
5x
0x
Crown Dorel Hasbro JAKKS Mattel Newell Spin Master Summer TOMY
Crafts Pacific Brands Infant
Last Twelve-Month Total Return
60%
Total Return Percentage
40%
20%
0%
-20%
-40%
Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Apr-21
Index includes HAS, DII.B, CRWS, JAKK, MAT, NWL, TOY, SUMR, 7867
Source: Capital IQ as of April 27, 2021
11Juvenile Products & Toys | May 2021
JUVENILE PRODUCTS & TOYS REPORT CONTRIBUTORS
Sophea Chau
Managing Director
schau@capstonepartners.com | 617-619-3307
Sophea has over 15 years of experience in mergers & acquisitions, private placements
and financial advisory services within the consumer industry. Sophea has spent her
career working with compelling brands in the Consumer Enthusiasts and Juvenile
Products sectors and has achieved outlier results for her clients through thoughtful
asset positioning and strategy articulation.
Prior to joining Capstone, Sophea started her career in New York City with FTN Midwest
Securities, a full-service investment banking firm based in Cleveland. In 2018, Sophea
was named an Emerging Leader by the M&A Advisor.
Connor McLeod
Research Associate
cmcleod@capstonepartners.com | 617-619-3319
Connor is a Research Associate at Capstone Partners primarily specializing in Building
Products & Construction Services, Consumer & Retail, and Healthcare. Prior to joining
Capstone, Connor was a specialist with the Investor Services team at BlackRock where
he worked with mutual funds, closed end funds, and exchange traded funds and
communicated fund performance, relevant market dynamics, and facilitated trades for
shareholders, financial advisors, and institutional clients. Connor holds a BA in
Economics from Bates College and is a Series 7 Registered Securities Representative.
2020 2020 2020 2020 2019
MID-MARKET MIDDLE MARKET CORPORATE
INVESTMENT BANKING INVESTMENT BANKING
INVESTMENT BANKING INVESTMENT BANK RESTRUCTURING
FIRM OF THE YEAR FIRM OF THE YEAR
FIRM OF THE YEAR OF THE YEAR FIRM OF THE YEAR
INTERNATIONAL AWARDS
12Juvenile Products & Toys | May 2021
FIRM TRACK RECORD
CONFIDENTIAL CONFIDENTIAL
CORPORATE SALE CORPORATE SALE HAS DIVESTED HAS MERGED WITH
E-COMMERCE
CHILDREN’S LITERACY a portfolio company
BRANDED CHILDREN’S of
APPLICATION
APPAREL
HAS BEEN ACQUIRED BY HAS BEEN ACQUIRED BY HAS BEEN ACQUIRED BY HAS BEEN ACQUIRED BY
a portfolio company of a portfolio company of
HAS BEEN ACQUIRED BY HAS BEEN ACQUIRED BY HAS BEEN ACQUIRED BY HAS BEEN ACQUIRED BY
a portfolio company of
HAS BEEN ACQUIRED BY HAS DIVESTED HAS BEEN ACQUIRED BY HAS BEEN ACQUIRED BY
13Juvenile Products & Toys | May 2021
ENDNOTES
1. NPD, “U.S. Toy Industry Retail Sales Grew 16% in 2020,” https://www.npd.com/wps/portal/npd/us/news/press-
releases/2021/the-npd-group-us-toy-industry-retail-sales-grew-16-in-2020/, accessed February 21, 2021.
2. Hasbro, “Hasbro Reports Fourth Quarter and Full-Year 2020 Financial Results,” https://investor.hasbro.com/news-
releases/news-release-details/hasbro-reports-fourth-quarter-and-full-year-2020-financial, accessed February
24, 2021.
3. Mattel, “MATTEL REPORTS FOURTH QUARTER AND FULL YEAR 2020 FINANCIAL RESULTS,”
https://investors.mattel.com/static-files/377d74e0-21d3-428a-bf02-78383979c64b, accessed February 24, 2021.
4. NPD, “U.S. Juvenile Products Industry Grows 6.5% in 2020, Reports The NPD Group,”
https://www.npd.com/wps/portal/npd/us/news/press-releases/2021/us-juvenile-products-industry-grows-65-in-
2020/, accessed February 18, 2021.
5. Space Market Research, “Smart Baby Monitor Market to Witness Exponential Growth by 2026 | Motorola Mobility
LLC; Safety 1st; iBaby Labs, Inc.; Miku,” https://spacemarketnow.com/2019/11/06/global-smart-baby-monitor-
market-2/, accessed February 24, 2021.
6. Owlet, “Investor Presentation,”
https://www.sec.gov/Archives/edgar/data/1816708/000114036121004864/nt10020073x2_ex99-2.htm, accessed
February 24, 2021.
7. CIO Review, “Paladino Capital Acquires Zoe Strollers for an Undisclosed Sum,”
https://www.cioreview.com/news/paladino-capital-acquires-zoe-strollers-for-an-undisclosed-sum-nid-32405-
cid-1.html, accessed February 23, 2021.
8. Cision, “LÍLLÉbaby Acquired by Thrive International, Inc.,” https://www.prnewswire.com/news-releases/lillebaby-
acquired-by-thrive-international-inc-301211922.html, accessed February 21, 2021.
9. Toy News, “TOMY International acquires Fat Brain Toys,” https://www.toynews-online.biz/2020/10/19/tomy-
international-acquires-fat-brain-toys/, accessed February 18, 2021.
10. Mobihealth News, “Infant monitoring tech brand Owlet announces SPAC merger for Q2 2021,”
https://www.mobihealthnews.com/news/infant-monitoring-tech-brand-owlet-announces-spac-merger-q2-2021,
accessed February 23, 2021.
Common Goals. Uncommon Results.
Disclosure
This report is a periodic compilation of certain economic and corporate information, as well as completed and announced merger and
acquisition activity. Information contained in this report should not be construed as a recommendation to sell or buy any security. Any
reference to or omission of any reference to any company in this report should not be construed as a recommendation to buy, sell or
take any other action with respect to any security of any such company. We are not soliciting any action with respect to any security
or company based on this report. The report is published solely for the general information of clients and friends of Capstone
Partners. It does not take into account the particular investment objectives, financial situation or needs of individual recipients.
Certain transactions, including those involving early-stage companies, give rise to substantial risk and are not suitable for all investors.
This report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not
be relied upon as such. Prediction of future events is inherently subject to both known and unknown risks and other factors that may
cause actual results to vary materially. We are under no obligation to update the information contained in this report. Opinions
expressed are our present opinions only and are subject to change without notice. Additional information is available upon request.
The companies mentioned in this report may be clients of Capstone Partners. The decisions to include any company in this report is
unrelated in all respects to any service that Capstone Partners may provide to such company. This report may not be copied or
reproduced in any form or redistributed without the prior written consent of Capstone Partners. The information contained herein should
not be construed as legal advice.
14Market Presence
With a long-established U.S. footprint, together with an international partner
platform, we provide clients with broad expertise and access to key market
relationships on a global basis. Our presence is backed by ~200 professionals in the
U.S. with 450+ professionals across 43 countries.
218 $12.5B 30% 6th
M&A transactions aggregate of our deals globally ranked for
completed in 2020 transaction value are cross- deals under $500m
border
$65.1M 51 65%
average deals involving foreign completed with a
transaction private equity firms European partner
value
United States International
170+ professionals 450+ professionals
12 offices 60+ offices in 43 countries
Boston · Chicago · Dallas · Asia: China · India · Japan · Thailand
Denver Detroit · Los Angeles · Africa: Congo · Egypt · Ghana · Ivory Coast · Mauritius · Morocco · Nigeria · Senegal · South Africa
New York Orange County · Americas: Toronto · Vancouver · Argentina · Brazil · Chile · Colombia · Mexico · Panama & Central
Philadelphia Richmond · San America · Peru
Diego · Tampa Europe: Belgium · Bosnia & Herzegovina · Croatia · Czech Republic · Finland · France · Germany ·
Hungary · Ireland
Italy · Netherlands · Poland · Portugal · Russia · Serbia · Slovakia · Slovenia · Spain · Sweden ·
United Kingdom
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