RoundTable Healthcare Partners has completed the acquisition of Santa Cruz Nutritionals from Levine Leichtman Capital Partners. Santa Cruz Nutritionals is RoundTable’s fourth platform investment from its $600 million Fund III.
Santa Cruz Nutritionals (SCN) is a manufacturer of gummy vitamin, mineral, supplement and other nutraceutical products. The company was founded in 1968 and is headquartered in Santa Cruz, CA (www.santacruznutritionals.com).
Lester Knight, a Founding Partner and Co-Chairman of RoundTable, will serve as Chairman of the Board of Santa Cruz. Mike Westhusing, Chief Executive Officer, and Randy Bridges, Chief Financial Officer and Chief Operating Officer, will continue to lead the company’s management team and will serve as members of the Board.
“We are very excited to partner with Santa Cruz,” said Mr. Knight. “The gummy dosage formulation is extremely unique, in high demand and has significant room for growth. Mike and Randy have capitalized on this opportunity by building SCN into a market-leading, high quality manufacturer of these products. We look forward to working with them and their team to expand upon their current product offering to take advantage of positive market growth trends.”
Senior credit facilities for this transaction were led by GE Capital, Healthcare Financial Services. Senior subordinated notes were provided by a co-investor and by RoundTable Capital Partners II, a captive subordinated debt fund that makes fixed rate subordinated debt investments alongside the equity investments of RoundTable’s equity funds.
RoundTable Healthcare Partners is an operating-oriented private equity firm focused exclusively on the healthcare industry. RoundTable manages $1.9 billion in capital, including three equity funds totaling $1.5 billion and two subordinated debt funds totaling of $400 million. The firm is based in Lake Forest, IL (www.roundtablehp.com).
Levine Leichtman Capital Partners manages approximately $6.5 billion of capital through private equity partnerships, distressed debt and leveraged loan funds. The firm is currently making new investments through Levine Leichtman Capital Partners V, LP; Levine Leichtman Capital Partners SBIC Fund, LP; and Levine Leichtman Capital Partners Private Capital Solutions II, LP. The firm is based in Los Angeles with offices in Chicago, Dallas, New York and London (www.llcp.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 7-30-13