Genesis Capital Advises Scrubs & Beyond on its Sale to Kindthread

Genesis Capital Advises Scrubs & Beyond on its Sale to Kindthread

Genesis Capital is pleased to announce it advised Scrubs and Beyond on its sale to Kindthread, a portfolio company of LKCM Headwater Investments. Scrubs & Beyond is the largest retailer of healthcare apparel and accessories in the country operating 113 stores in 30 states and operates one of the largest scrubs-based ecommerce platform.

Kindthread’s portfolio comprises iconic brands serving the healthcare professional: Landau, White Cross, and Chefwear. “Our commitment to our brand and independent retail partners has never been greater. We are excited to closely work with them to grow their businesses,” said David Murphy, Chief Executive Officer of Kindthread. “We believe combining great brands with an omnichannel and specialty retail ecosystem allows us to best serve healthcare professionals and demonstrates our commitment to the industry overall.”

“Kindthread represents a unique opportunity to invest in a platform of established brand players in Landau, White Cross, Chefwear, and Scrubs & Beyond—that, combined, have been servicing our global healthcare professionals for over 100 years,” said Rick Settle, Principal of LKCM Headwater Investments. “We are impressed with David Murphy and his teams’ ability to quickly scale this platform and look forward to helping accelerate the reinvestment into these brands and future complementary acquisitions to further expand innovative product offerings, service capabilities, and geographic relevance.”

“LKCM Headwater is committed to partnering with family-owned businesses and leading executives. We continue to seek platforms that we believe can benefit from our ability to drive transformational growth through organic initiatives and add-on acquisitions,” added Michael Bornitz, Partner of LKCM Headwater Investments. “We are excited to partner with David Murphy and his executive team who have a deep knowledge of the industry and a comprehensive plan to grow Kindthread’s portfolio. This in addition to the talented teams across the brands and the leaders’ commitment to a positive culture, are key elements for a successful future.”

A new executive team brings significant expertise across supply chain, retail, sales, design, apparel and workwear. This group will reinvigorate the portfolio’s pioneering brands whose historical product and service innovations are synonymous with the healthcare industry today.

“Each of our iconic brands brings their distinct value to the portfolio and each has outsized potential to become even stronger together, through modernization and efficiency,” said Murphy. “We are unlocking extraordinary competitive advantage, setting the stage for continued growth by investing in these brands and providing unique products, services and experiences to our retail partners.”

Genesis Capital served as the financial advisor and Husch Blackwell served as legal counsel to Scrubs and Beyond. Mayer Brown served as legal counsel to LKCM Headwater Investments.

About Scrubs and Beyond
For over 20 years, Scrubs & Beyond has offered fashion-forward products and outstanding customer service. Seeing an opportunity to raise the bar and provide a transformative experience catering to discerning healthcare professionals, Scrubs & Beyond has grown its business to become the largest retailer of healthcare apparel and accessories in the country. With the acquisition of Uniform City and Life Uniform companies in 2013, Scrubs & Beyond currently operates 113 stores in 30 states nationwide and is one of the largest scrubs-based ecommerce businesses with a relentless focus on customer experience.

About Kindthread
Kindthread is dedicated to serving and transforming the healthcare apparel industry while driving positive community impact. We honor those who make the world better through their service. Our global ecosystem of trusted brands and highly coveted products creates an unprecedented retail experience for caregivers around the world. The Kindthread portfolio of brands includes Landau, White Cross, Chefwear, and leading omnichannel retailer Scrubs & Beyond.

About LKCM Headwater Investments
LKCM Headwater Investments is a Texas-based private equity firm that seeks to partner with management teams to build highly successful companies taking an operationally minded approach and provide companies with the tools necessary to build market leaders with sustainable competitive advantages. LKCM Headwater’s investment discipline is derived from several decades of investing capital for their partners and themselves.

Company Type: Family-Owned Businesses, Private Companies

Transasction Type: Sellside M&A

Industry: Healthcare