Deals

ICV buys US retailer Marshall for a second time

The private investment firm has repurchased the 70-store retail company, which includes souvenir and Harvey Davidson stores in Las Vegas and Atlantic City, after previously acquiring the company just five years ago.

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ICV Capital Partners has acquired the retailer, Marshall Retail Group, for a second time in just five years for an undisclosed sum.

The New York-based private investment firm said it bought the retail company, which operates 70 stores in 25 casinos and locations in Las Vegas, Atlantic City, Fort Lauderdale and Tunica in Mississippi, after previously selling it in 2005. Five years ago, ICV bought the company from the Marshall family, selling it two years later to private equity firm Bruckmann, Rosser, Sherrill & Co.

In a statement yesterday, Willie Woods, co-founder and managing director of ICV, said the firm had maintained a minority stake in Marshall following the sale. He added that ICV’s former knowledge of the retailer would help grow the business further.

During its original investment period, ICV helped Marshall’s upgrade its IT system, improve the management team and expand the retailer’s footprint, from around 50 to 70, according to the firm’s website. That investment was made through the firm’s first fund. The current Marshall deal is being made through ICV’s second fund, the $313 million (€221 million) ICV II vehicle.

Marshall sells logo, souvenir, sundry and apparel products, including Harley Davidson-licensed products in casinos and other stores including Caesars Palace, the MGM Grand and the Venetian in Las Vegas, and the Borgata in Atlantic City.

Las Vegas casinos have experienced a steady decline in gambling revenue this year as US consumers struggle with high gasoline prices and the rising cost of air travel. In August, Boyd Gaming Corp., one of the oldest and most respected Las Vegas gambling companies, said financing problems had caused it to suspend construction of a $4.8 billion resort complex on the Las Vegas Strip.

Michael Wilkins, chief executive officer of Marshall, said emerging markets within Las Vegas, such as Poconos and the Midwest, were creating “avenues for growth in new venues.”