- Case Study
"TDM has been with me every step of the way since I joined Baby Bunting as CEO. TDM brings a true global perspective to our business and their input on a range of financial, people, and strategic matters has been invaluable.’’
MATT SPENCER, CEO, BABY BUNTING LIMITED
Baby Bunting’s Growth Story
In 2007, the baby goods industry was highly fragmented. Baby Bunting was a private company and operated 6 stores with an annual turnover of $40 million.
During TDM’s investment period (2009-18) Baby Bunting grew to 50 stores and over $360 million in revenue.
Today Baby Bunting are listed on ASX (BBN) and 20x larger than its nearest competitor. It has fulfilled its vision of becoming a ”category killer” in the Australian market with over 70 stores with revenue in excess of $500m.
Our Partnership
Baby Bunting’s chairman, founder and executive team were keen to work with an equity partner that shared their long-term vision of category dominance. This was a perfect values match for TDM’s undefined investment horizon.
After becoming the largest shareholder in 2012 at 42%, TDM guided leadership through their IPO on ASX in October 2015.
TDM served on the board of Baby Bunting from June 2009 until March 2017. Over the 8 years of partnership, TDM was very active in its support for the company, from recruiting numerous executives and board members, developing appropriate short- and long-term management incentive plans, providing rigour in shareholder communications and capital management strategy, as well as M&A advice.
In 2015, TDM led Baby Bunting’s IPO and retained 82% of its shareholding.
By August 2018, after 11 years of ownership, TDM had fully exited Baby Bunting. Our returns (including dividends) were approximately 7x money-on-money.
