10.23.23
Hello Bello –which makes baby and family care products — has reached an agreement in principle to be acquired by Hildred Capital Management, a healthcare-focused private equity firm that seeks opportunities to create value in middle-market companies.
To facilitate the acquisition, Hello Bello and its affiliates have filed voluntary petitions for relief under Chapter 11 in the United States Bankruptcy Court for the District of Delaware. The company is seeking approval of the proposed transaction pursuant to section 363 of the United States Bankruptcy Code, which will subject the proposed transaction to higher or otherwise better offers.
Hello Bello's secured lenders are supportive of the transaction and have committed to provide debtor-in-possession financing. The company anticipates that this financing, as well as cash generated from ongoing operations, will be sufficient to fund its business operations through the sale process, which it expects to conclude within the next few months.
"Given macroeconomic trends, including inflation and increased shipping costs, we believe that this course of action is the best path forward to ensure that Hello Bello continues to bring families the highest quality and most environmentally friendly products at affordable prices," said Erica Buxton, Hello Bello CEO.