In 2024, lending for mergers and acquisitions (M&A) showcased resilience amid economic headwinds and rising interest rates. Deal activity concentrated on strategic acquisitions and private equity-driven transactions, with lenders carefully structuring financing to balance risk and opportunity. Unitranche loans and hybrid debt solutions gained traction, providing streamlined capital for complex deals. Lenders prioritized high-growth sectors such as technology, healthcare and renewable energy, which offered robust cash flows and long-term potential. Due diligence tightened as credit providers scrutinized leverage levels and borrower resilience. ESG considerations increasingly influenced M&A financing, with sustainability-linked loans becoming more common. Despite cautious market conditions, creative and flexible lending approaches enabled M&A activity to proceed, supporting strategic growth and consolidation across industries.
Deal Spotlight: Assembled Brands
Assembled Brands Backs Seaweed Bath Co. Strategic Acquisition with LBO Facility
Assembled Brands provided a significant LBO facility to an existing client, The Seaweed Bath Co. to support the acquisition of Andalou Naturals and Mineral Fusion from BWX Brands.
Seaweed Bath Co., a pioneering brand in ocean-inspired personal care products, announced the strategic acquisition of Andalou Naturals and Mineral Fusion, prominent names in natural skincare and cosmetics. These brands, known for their innovative approaches in fruit stem cell science and natural cosmetics respectively, are widely available across major retailers nationwide, including Whole Foods Market, Amazon and Sprouts Farmers Market. This expansion was made possible through a significant leveraged facility provided by Assembled Brands Capital, reinforcing Seaweed Bath Co.’s commitment to product growth and sustainability innovation.
In addition to financing existing brands, Assembled Brands also supports leveraged buyouts (LBOs) and brand purchases for borrowers, offering highly flexible financing options. This capability allows the firm to provide tailored financial solutions that empower companies like Seaweed Bath Co. to pursue strategic acquisitions and expand their market footprint efficiently.
“Our team is very excited to welcome Andalou Naturals and Mineral Fusion to the Seaweed Bath Co. family,” Tim Schaeffer, chief executive officer, Seaweed Bath Co., said. “These acquisitions are our first step in creating a best-in-class natural beauty platform that leverages scale to drive product and sustainability innovation as well as serve the evolving needs of both retail partners and consumers. Assembled Brands has been instrumental in this undertaking, providing us with the necessary capital that has enabled us to seize these strategic opportunities.”
Seaweed Bath Co. remains dedicated to developing innovative seaweed-based products that promote natural beauty and wellness.
