Case | HBS Case Collection | April 2005 (Revised August 2011)

Berkshire Partners: Bidding for Carter's

by Malcolm P. Baker and James Quinn

Abstract

A five-member team from Berkshire Partners must recommend a final bid and financial structure for a leveraged buyout of William Carter Co., a leading producer of children's apparel. Investorcorp, a global investment group, has put the company up for auction. Goldman Sachs, in addition to running the auction, was offering "staple-on" financing. Under this arrangement, the winning bidder would have the option to finance the deal through a prepackaged capital structure.

Keywords: Leveraged Buyouts; Capital Structure; Private Equity; Financing and Loans; Auctions; Bids and Bidding; Valuation; Apparel and Accessories Industry;

Citation:

Baker, Malcolm P., and James Quinn. "Berkshire Partners: Bidding for Carter's." Harvard Business School Case 205-058, April 2005. (Revised August 2011.)