Bain Capital Buys 50% Stake in Toms Shoes

Private-equity firm Bain Capital has purchased half of Toms Shoes in a move aimed at speeding growth of the social enterprise that pioneered a model of for-profit philanthropy with its giveaway of a pair of shoes to a needy child for each pair sold, Bloomberg and The New York Times write.

The companies did not disclose financial terms of the sale, which was announced Wednesday after being initially reported by Reuters, but sources familiar with the deal said it values Toms at $625-million. Blake Mycoskie, the Los Angeles-based firm’s founder and public face, will remain on board, focusing on developing new products and marketing campaigns.

Mr. Mycoskie said he decided this year to bring in a deep-pocketed partner to manage Toms’ daily operations and expand the firm, which has given away 25 million pairs of shoes in its eight years and added an eyewear line in 2011. “My dream is for Toms to be the most influential and inspirational company in the world,” he said.

Ryan Cotton, a Bain principal, said the investment will help Toms boost distribution in Europe and Asia and build more retail stores, of which there are now two. Toms also plans to move into new product areas like household items and apparel. The company’s “one-for-one” model has been picked up by other firms, including glasses maker Warby Parker and shoe company Skechers.

Listen to a podcast from The Chronicle’s archive offering an inside look at Toms Shoes and its founder.