Bain Capital Specialty Finance (BCSF) is the latest investor in Berlin Brands Group (BBG). The company was one of the investors that participated in a funding round that raised $700 million for the Berlin-based e-commerce company.
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Bain Capital is a business development company specializing in middle-market investments.
Bain Capital replaces private investment house Ardian as a minority shareholder in Berlin Brands. The majority of shares are still held by the executive team and CEO Peter Chaljawski of BBG. (See Bain Capital stock charts on TipRanks)
The funding round was part of Berlin Brands’ capital-raising spree as it seeks to raise cash to acquire emerging e-commerce brands in the U.S. and the U.K. The e-commerce company also intends to use the new capital to expand its supply chain and logistics network and develop its tech platform.
According to Peter Chaljawski, the capital injection from Bain Capital will set the company on a path to become a global house of brands. It should also allow the company to acquire and develop brands globally.
Chaljawski is also banking on Bain Capital’s experience in working with founders worldwide to help Berlin Brands evolve into a leading e-commerce company while scaling operations.
“We have partnered with many founder-led management teams and look forward to helping Peter and his team achieve their goal of becoming a global leader in consumer e-commerce,” said Miray Topay, Managing Director at Bain Capital Private Equity.
Recently, Oppenheimer analyst Mitchel Penn reiterated a Buy rating on the stock and raised the price target to $16 from $15.50, implying 5.54% upside potential to current levels.
Consensus among analysts is a Moderate Buy based on 1 Buy and 1 Hold. The average Bain Capital price target of $15.50 implies 2.24% upside potential to current levels.
BCSF scores a 7 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to perform in line with market averages.
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