Ampersand and Ironwood Acquire Nutritional Labs
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Ampersand and Ironwood Acquire Nutritional Labs

nutritional nf1Elite One Source Nutrisciences, a portfolio company of Ampersand Capital Partners, has acquired Nutritional Labs International.  Ironwood Capital provided subordinated debt and equity to support the transaction.

Nutritional Labs International (NLI) is a contract manufacturer of nutritional and dietary supplements.  The company formulates and produces a range of supplement products that include vitamins, minerals, botanicals, specialty formulations, and homeopathic over-the-counter drugs.  Services provided include product design/engineering and formulation, ingredients sourcing, manufacturing, bottling and packaging, quality assurance, laboratory testing, and documentation support.  NLI specializes in solid-dose delivery forms, principally tablets and capsules.  The company was founded in 1997 and has a 50,000 sq. ft. manufacturing and laboratory facility in Missoula, MT (www.nutritionallaboratories.com).

Elite One will combine NLI with its existing contract manufacturing business, NutraMed, which it acquired in December 2013.  The company will consolidate administrative functions and operate with one senior management team, but will continue manufacturing, which will include additional expansion, at both the NutraMed’s Chino, CA facility and NLI’s Missoula, MT facility.

“As the regulatory landscape governing the nutritional supplement industry evolves, the addition of NLI to our portfolio allows Elite One to accelerate its position as the industry’s leading provider of high-quality products to some of the most recognized brands and retailers in the industry,” said Dr. Tom Burnell, President and CEO of Elite One.  “Elite One will be the industry’s elite, single source company for contract manufacturing of tablets, capsules, and powders”.

Ironwood Capital provided subordinated debt and a minority equity investment in Elite One to finance the acquisition of NLI.  “Alex Levental and the Ironwood team provided Elite One with a seamless and simplified financing solution that allowed Ampersand to quickly and efficiently complete a complicated transaction,” said Dr. Burnell.

Ironwood Capital makes mezzanine and equity investments of $5 million to $20 million in companies with revenues of $20 million to $200 million and EBITDAs of $3 million to $15 million.  The firm is generally industry agnostic but has experience in recurring revenue business service models, environmental services and precision manufacturing.  The firm has $500 million of capital under management and is headquartered in Avon, CT (www.ironwoodcap.com).

Ampersand Capital Partners makes middle market growth equity investments in the healthcare sector.  Ampersand is based in Wellesley, MA (www.ampersandcapital.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 1-16-15

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