Capmark Financial Group Inc., a commercial real estate finance company, has acquired Bluestem Brands for a total cash consideration of $565 million, subject to various pre-and post-closing adjustments.
Capmark expects to fund the purchase price and associated transactional expenses with cash on hand, an equal amount of cash invested in Capmark by affiliates of Centerbridge Partners through the exercise of warrants and a USD300 million term debt facility led by Credit Suisse, Jefferies & Co. and US Bank.
Certain members of Bluestem’s management team are also investing in Capmark in connection with the transaction.
Upon completion of the transaction Steve Nave, Bluestem’s chief executive officer, will become chief executive officer of Capmark Financial Group and join the company’s board of directors. Bluestem Brands will remain headquartered in Eden Prairie, Minnesota.
“Joining with Capmark offers an excellent opportunity for Bluestem to enhance its ability to deliver industry-leading growth and provide greater access to quality merchandise with flexible payment options to the customers we serve,” says Steve Nave, president and chief executive officer of Bluestem Brands.
Tags: Private Equity, Private Equity Firm, Private Equity Group, Private Equity Company, Private Equity Fund, Private Equity Investment, Private Equity Investor, Fund of Fund, Private Equity Business, Private Equity Industry, PE, Capmark Financial Group Inc., Real Estate, Commercial Real Estate, Bluestem Brands, Centerbridge Partners, Credit Suisse, Jefferies & Co., US Bank, Steve Nave, Eden Prairie, Minnesota.