Transom Capital Group
Smart Moves for Safer Sleep: Transom Capital Scales Infant Accessories and Apparel Platform, HALO Dream, Inc., through Strategic M&A
To build a platform in the booming premium baby market, Transom Capital needed more than a smart strategy—it needed the right legal partner. With counsel from Barnes & Thornburg, Transom moved quickly and decisively to acquire two standout brands in safe sleep and infant apparel, positioning its platform investment for long-term growth in a competitive space.
Challenge
As a leading middle-market private equity firm, Transom Capital Group differentiates itself in a competitive landscape as a result of its investment strategy, track record, and new deal activity. In 2024 alone, PE firms announced $565 billion in deals — up 25% by value and 20% by volume from the previous year. To succeed in this environment, Transom identified the baby products category as having stable and growing consumer demand, with leading, high-quality brands capable of achieving clear differentiation.
For Transom, HALO Dream, Inc. offered opportunities to establish a platform investment and a consolidator in the juvenile products space. According to Dimension Market Research, the global baby products market is expected to grow by $233.8 billion by 2033 from 2025, with a preference among U.S. consumers for premium, specialized products.
Yet despite its growth potential, the industry posed a challenge: how could Transom protect and grow HALO’s meaningful market share in a competitive space with myriad brands?
For Transom, HALO Dream, Inc. offered opportunities to establish a platform investment and a consolidator in the juvenile products space. According to Dimension Market Research, the global baby products market is expected to grow by $233.8 billion by 2033 from 2025, with a preference among U.S. consumers for premium, specialized products.
Yet despite its growth potential, the industry posed a challenge: how could Transom protect and grow HALO’s meaningful market share in a competitive space with myriad brands?
Solution
Transom turned to Barnes & Thornburg partner Anthony Arnold, a trusted legal advisor since 2020, to help support the company in two acquisitions over the last 12 months. Arnold had previously worked with Transom on investments in other industries.
After Transom identified an opportunity with BreathableBaby LLC — a designer of innovative, safe sleep products — Transom engaged Arnold to assist in structuring and closing the transaction in May 2024. The success of that deal quickly led to another: in March 2025, Transom once again worked with Barnes & Thornburg to acquire Baby Merlin, the brand behind the iconic Magic Sleepsuit and a leader in premium infant sleepwear.
Working from Barnes & Thornburg’s Southern California offices, Arnold collaborated closely with Transom’s Los Angeles-based team to help navigate the legal and operational complexities of both transactions.
After Transom identified an opportunity with BreathableBaby LLC — a designer of innovative, safe sleep products — Transom engaged Arnold to assist in structuring and closing the transaction in May 2024. The success of that deal quickly led to another: in March 2025, Transom once again worked with Barnes & Thornburg to acquire Baby Merlin, the brand behind the iconic Magic Sleepsuit and a leader in premium infant sleepwear.
Working from Barnes & Thornburg’s Southern California offices, Arnold collaborated closely with Transom’s Los Angeles-based team to help navigate the legal and operational complexities of both transactions.
Result
Leveraging Barnes & Thornburg’s deep bench of M&A talent and results-driven legal strategy, Transom successfully completed two high-profile acquisitions of premium baby brands within a year — solidifying a leadership position in the premium baby products market and positioning its portfolio for continued growth.