Sun & Skin Care Research, LLC (SSCR) was a mid-sized company, based in Cocoa, FL that manufactured, marketed and distributed consumer sun care products. SSCR, was one of the top five providers in the industry, which sold through food, drug, mass merchandisers and specialty retailers across the U.S. and internationally. In 2012, when SSCR was purchased by private equity firm Source Capital, the company already owned NO-AD and Ocean Potion, and shortly thereafter acquired the Bull Frog brand in 2013.
A new management team was brought in who focused on top line growth. This produced increased costs and SG&A as they oversold the channel, spent overhead, poorly allocated marketing dollars, and failed to launch a licensed premium brand. In 2013, the Bull Frog acquisition added a significant amount of debt to SSCR’s balance sheet. Meanwhile, an uncharacteristically cold summer season caused a significant decrease in sales the same year. All of which contributed to substantial operating losses and a need for additional resources to relaunch a number of “tired” brands, introduce new products, and expand offerings.
In June of 2015, facing pressure from lenders who felt the company was overly burdened with debt, SSCR’s management and board decided to sell the company. SSCR sought Carl Marks Advisors’ expertise as exclusive financial advisor and investment banker to help explore strategic alternatives that would support continued growth and maximize value for stakeholders.