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By Maureen Flanagan
Established in 1920, Evenflo is one of the oldest and most recognized names in the juvenile products industry. The company offers a full line of safety-tested, innovative products under brand names such as Evenflo® infant feeding products, Snugli® infant carriers, Exersaucer® baby walkers, and Gerry® safety gates. Parents have made the company's brands their products of choice and have given Evenflo a top three market share in the majority of its product lines.
On August 3, 2004, Evenflo was acquired by Harvest Partners, Inc., a New York-based private equity investment firm, from Kohlberg, Kravis Roberts & Co. In support of the acquisition, American Capital Strategies, Ltd. (Nasdaq: ACAS) provided a $25.5 million financing package.
"Moving forward, the company is positioned to leverage its leading brand names and high customer awareness through its reduced cost structure, streamlined operations and new product innovations," said Wayne W. Robinson, the company's CEO.
Headquartered in Vandalia, Ohio, Evenflo has come to dominate the market through the introduction of innovative products for children from birth to pre-school. In the last year alone, the company launched 25 new products. The Big Kid™ and Chase Comfort Touch™ booster seat lines, added to an already extensive line of car seats for infants and children, have been highly successful at leading retailers. Booster seats are projected to grow rapidly as some state laws now require them for children until they reach the age of eight or a height of 57 inches.
 Founded as a supplier for infant feeding equipment, Evenflo has grown its feeding time products to include top selling nursing systems, breastfeeding aids, high chairs, teethers, pacifiers, cups, and other accessories. The company also leads the market for breast pumps. Evenflo has recently added the Dazzler™ cups that feature shifting 3-D images as well as upgrades to its popular high chair lines. Pictured above is a variety of feeding equipment offered by Evenflo.
 In its playtime segment, Evenflo's offerings include activity centers, infant carriers, cribs, swings, playards, bouncers, mattresses, and doorway jumpers. Its flagship Exersaucer® product line offers both exercise and entertainment, enabling a child to play, spin, rock and bounce in place. In 2004, Evenflo plans to launch a redesigned Exersaucer® Learning and Development product for children from six to eighteen months old. Evenflo has the leading market share in safety gates under the Sure Lock™ and Secure Solutions™ brands and the number one share for Snugli® infant carriers. Pictured above is the Exersaucer® Deluxe Active Learning Center™, a fun and safe activity center which helps a baby develop in areas such as cause and effect understanding and hand eye coordination.
 The company's On-the-Go products include both strollers and travel systems, which feature a stroller with a detachable car seat (pictured at left). In 2004, the company introduced new features, redesigns and product innovations to these lines as well.
Responding to its customers' desire for product differentiation, Evenflo tailors products for individual retailers with a multi-generational strategy that enables them to mix and match accessories and individualize their offerings. It also enables the company to get to market quicker with additional features on core platform product lines and to add or take away accessories to meet a retailer's desired price points. All products are designed to meet consumer needs for safety, quality and desired features - the three most important criteria in purchasing juvenile products.
To further spur growth, Evenflo is shifting customer mix toward high- growth mass merchant retailers for juvenile products such as Wal-Mart and Target. It also is expanding its relationship with Babies "R" Us, a growing segment within Toys "R" Us.
As of December 31, 2003, Evenflo owned 300 patents worldwide with 31 patents pending in addition to its well-known trademarks.
Since 1997, American Capital has invested more than $3 billion in the middle market and manages a current portfolio of over 100 companies.
For more information about American Capital's portfolio click here. The U.S. market for juvenile products - which accounts for some $6.3 billion in annual retail sales - is projected to grow at a 4% annual rate. This growth will be driven by such trends as an increase in U.S. birth rates, stricter car seat safety regulations, and active parenting lifestyles.
Sales growth has been driven by gains from mass merchant retailers such as Wal-Mart and Target, which represent the largest and fastest growing channel for juvenile products. These merchandisers are also expanding their foreign retail presence, providing an opportunity for Evenflo to grow sales internationally.
With its long history of product innovation and a top management team re-energized by a highly successful sales strategy, Evenflo is leading the way for generations of juvenile products to come.
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