Private equity firm Bain Capital has agreed to acquire a 50 percent stake in TOMS Shoes in a deal that values the company, which makes casual footwear known as alpargatas, at about $625 million, including debt, according to people familiar with the matter.
Bain prevailed over other private equity firms in an auction for TOMS and a deal announcement could come as early as Wednesday, the people said. TOMS founder, Blake Mycoskie, who has been sole owner, will retain half of the company and stay at the helm.
The sources asked not to be identified because the deal has not been publicly announced. Bain and TOMS representatives did not immediately respond to requests for comment.
TOMS markets itself as an ethical footwear company, donating one pair of shoes to a child in need in a developing country for every pair of shoes it sells. Its offerings include flats, slip-ons, lace ups and sandals.
It also sells eyewear on the same basis, donating one pair of glasses for every one purchased. TOMS says on its website it has given more than 10 million pairs of new shoes to children in need and helped restore sight to more than 200,000 people.
Bain's investment will be used to accelerate TOMS' business program and support its philanthropic activities, one of the people said.