According to Bloomberg sources Apollo (NYSE:APO) and Cerberus are considering bids for Shutterfly (NASDAQ:SFLY).
In April 2018 Shutterfly closed the deal on purchasing school photography giant Lifetouch hoping to capitalize on the new customer acquisition channel of over 10 million households. Since then Lifetouch has performed better than expected while the largest portion of Shutterfly’s business, the Consumer Unit has underperformed.
In February 2019 during Shutterfly’s 2018 annual and 4th quarter investors report, CEO Chris North announced that Shutterfly’s Board of Directors had formed a strategic review committee and retained the services of Morgan Stanley as a financial advisor to the board. North stated, “Our board continues to be committed to evaluating all options that maximize shareholder value.” Effectively putting Shutterfly up for sale.
It appears that this may result in bids from leveraged buyout and distressed investing firms Apollo and Cerberus.
Apollo Global Management, LLC is an American public equity firm, founded in 1990 by former Drexel Burnham Lambert banker Leon Black. The firm specializes in leveraged buyout transactions and purchases of distressed securities involving corporate restructuring, special situations, and industry consolidations. Wikipedia
Cerberus Capital Management, L.P. is an American private equity firm, specializing in “distressed investing”. The firm is based in New York City, and run by Steve Feinberg, who co-founded Cerberus in 1992 with William L. Richter, who currently serves as a senior managing director. Wikipedia
We will wait to see what the future holds for Shutterfly and Lifetouch.