TCG Capital Management’s $83 Million Investment in Food52

GCA Advisors, LLC, acted as the exclusive financial advisor on this transaction. Lowenstein Sandler provided legal advice to Food52 and Gibson Dunn represented TCG.

Food52, the premier kitchen and home brand, secured a majority investment by TCG Capital Management (“TCG”), an affiliate of The Chernin Group, LLC, to finance its continued growth and expansion.

TCG is investing $83MM in Food52 at a nine-figure valuation to enable the leading content-and-commerce innovator to develop offline retail, expand its in-house product line Five Two, and fuel business development and strategic partnerships.

Food52 built a digital hub combining content, commerce, and community around the belief that the kitchen is at the heart of the home and food is the center of a well-lived life. With this innovative approach, Food52 has upended the cooking space and become the dominant player, recognized four times by Inc. as one of the fastest-growing private companies in America on its Inc. 5000 list. Food52 sells more than 5,000 kitchen and home goods via drop shipment through its e-commerce platform, the Food52 Shop, and nearly half of those products are exclusive to Food52. The Shop accounts for 75 percent of Food52’s total revenue, and revenues from e-commerce have been averaging 50 percent growth YoY. Food52’s paid marketing spend accounts for only 5 percent of its commerce revenue; the rest comes organically from its highly engaged community of more than 16 million people.

Like other disruptive, aspirational brands in The Chernin Group’s portfolio such as Headspace and MeatEater, community and authentic engagement are the lifeblood of Food52. The site harnesses hundreds of thousands of reader-shopper opinions to create products including kitchen knives, cookware, and tableware that constitute the brand’s line, Five Two.

In the coming year, Food52 plans to use this new capital infusion to open a brick-and-mortar retail flagship and to expand its Five Two line, which has already become the most profitable brand in the Food52 Shop. Food52 will also use the investment to supercharge its content, video, and product and engineering teams, equipping them to grow the business into its next decade.

Lowenstein Sandler LLP represented Food52 with a team including Ed Zimmerman (Picture) and Alex D. Leibowitz, with tax support from Brian A. Silikovitz and James E. Gregory (executive compensation). The Lowenstein attorneys on the team were Robert W. Lynn, Pooja Patel, Elias Kwon, Bianka V. Barraza, and Matthew J. Moisan, with subject matter expertise from Sophia S. Mokotoff (tax), Megan Monson (executive compensation), Leah Satlin (commercial contracts), Taryn E. Cannataro (executive compensation), and Eric Jesse (insurance)

Involved fees earner: Bianka Barraza – Lowenstein Sandler LLP; Taryn Cannataro – Lowenstein Sandler LLP; James Gregory – Lowenstein Sandler LLP; Eric Jesse – Lowenstein Sandler LLP; Elias Kwon – Lowenstein Sandler LLP; Alex Leibowitz – Lowenstein Sandler LLP; Robert Lynn – Lowenstein Sandler LLP; Matthew Moisan – Lowenstein Sandler LLP; Sophia Mokotoff – Lowenstein Sandler LLP; Megan Monson – Lowenstein Sandler LLP; Pooja Patel – Lowenstein Sandler LLP; Leah Satlin – Lowenstein Sandler LLP; Brian Silikovitz – Lowenstein Sandler LLP; Ed Zimmerman – Lowenstein Sandler LLP;

Law Firms: Lowenstein Sandler LLP;

Clients: Food52 Inc;

Author: Ambrogio Visconti