May 5, 2016
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Archives for May 5, 2016

Swander Sells Probiotics Maker to Clorox

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renewlife nf1Swander Pace Capital has sold its portfolio company ReNew Life Formulas, a maker of probiotics and other digestive care supplements, to The Clorox Company for $290 million.  In calendar year 2015, Renew Life had revenues of $115 million.

renewlife nf11ReNew Life produces and sells digestive health products and functional foods including probiotic supplements, herbal cleansing products, digestive enzymes, oil supplements, fiber supplements, and other specialty supplements. The company sells its products through health food stores and retailers throughout the United States, as well as an online store. The company was founded in 1997 by Brenda and Stan Watson and is headquartered near Tampa in Palm Harbor, FL (www.renewlife.com).

Swander Pace acquired ReNew Life in April 2008. According to Swander Pace, during the firm’s eight year ownership term, Renew Life grew to become the No. 1 brand of probiotics in the natural channel, with a rapidly growing share in the food, drug and mass channel. Probiotic products represent about two-thirds of current Renew Life sales.

The fragmented digestive supplement market currently has sales of at least $10 billion in the US alone and is growing at about 7 percent annually. The probiotics subcategory, which is $1.3 billion in the US, is expected to grow at 15 percent per year.

Corby Reese nf2“This sale to Clorox is the culmination of years of dedication to growing a company focused on improving lives through better digestive health,” said Corby Reese, managing director at Swander Pace. “Stan and Brenda Watson were decades ahead of the mainstream when they founded Renew Life, and the company has been instrumental in bringing probiotics and digestive health into much broader public awareness. We’re proud to have worked with the Renew Life team to build such a respected industry leader.”

swander nf1Swander Pace invests in middle-market consumer products companies including branded and non-branded manufacturers, marketers, and distributors that sell through a range of retail and institutional channels. The firm generally targets companies that have up to $400 million in revenues.  Swander Pace has raised over $1.3 billion of equity capital through five private equity funds and has led investments in more than 40 consumer products companies.  Swander Pace was founded in 1996 and has offices in San Francisco; Bedminster, NJ; and near Toronto in Oakville, ON (www.spcap.com).

“The Swander Pace team has been an incredible partner to help us reach new heights,” said Ron Fugate, Renew Life’s CEO. “Their guidance and operational expertise set us on a path for accelerated growth and allowed us to attract the interest of Clorox, a strategic partner with a tremendous track record in best-in-class consumer products.”

clorox nf1The Clorox Company (NYSE: CLX) is a multinational manufacturer and marketer of consumer and professional products with approximately 7,700 employees worldwide and annual sales of $5.7 billion. The company is headquartered in Oakland, CA (www.clorox.com).

Rothschild (www.rothschild.com) was the financial advisor to Swander Pace on the transaction.

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 5-5-16

Warburg Pincus Acquires DocuTAP

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docutap nf1Warburg Pincus has completed the acquisition of DocuTAP, a provider of information technology to healthcare services providers.

DocuTAP’s software products are used by urgent care and primary care clinics for the maintenance of electronic medical records, practice management, and revenue cycle management. The company’s products are used by approximately 1,300 urgent care and primary care clinics. DocuTAP has 250 plus employees and is headquartered in Sioux Falls, SD (www.docutap.com).

DocuTAP was founded in May 2000 by its chief executive officer Eric McDonald. “Warburg Pincus is the ideal partner to position us for a future of growth as we expand our product line.  I’m excited that they share our vision for the future of DocuTAP in leading the on-demand healthcare market,” said Mr. McDonald.

Vishnu Menon nf1“Convenience, simplicity, and speed are what consumers want,” said Vishnu Menon, Managing Director, Warburg Pincus. “As the leader in urgent care technology, DocuTAP is positioned to take the reins in the on-demand healthcare market. We look forward to partnering with Eric and the rest of the leadership team to support their strategy of increasing the company’s market presence, continuing its rapid expansion, and bolstering its product line.”

warburg pincus nf15Warburg Pincus has more than $40 billion in assets under management and has raised 15 private equity funds since its founding in 1966. In November 2015, the firm reached a final close of Warburg Pincus Private Equity XII, LP at the hard cap of $12 billion. Warburg Pincus is headquartered in New York with offices in Amsterdam, Beijing, Hong Kong, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo and Shanghai (www.warburgpincus.com).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 5-5-16

CI Capital Adds-on to Maroon

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us chemicals nf1Maroon Group, a portfolio company of CI Capital Partners, has acquired U.S. Chemicals, a national distributor of specialty chemicals.

us chemicals nf33Founded in 1960, U.S. Chemicals supplies specialty chemicals that are used in the CASE (coatings, adhesives, sealants, and elastomers), lubricants, and plastics industries.  The company was founded in 1960 by Howard Von Oehsen. Today, the company is led by President and CEO Carol Piccaro (the daughter of Mr. Von Oehsen) and is based near Stamford in Darien, CT (www.uschemicals.com). The U.S. Chemicals’ management team will continue to actively manage the business under Maroon Group ownership.

“We’re thrilled to complete this acquisition and welcome U.S. Chemicals to Maroon Group,” said Mark Reichard, President & CEO of Maroon Group.  “The opportunity to build on the customer and supplier relationships that U.S. Chemicals has fostered over its history is very important for our organization as we execute our growth strategy.  This acquisition significantly broadens our product portfolio, service offerings and customer base.  Led by Carol Piccaro, the company has a talented team with a strong track record of growth and outstanding customer service.”

maroon nf1Maroon Group, acquired by CI Capital Partners in July 2014, supplies specialty additives, resins, pigments and packaging to North American manufacturers active in the plastics, coatings, composites, rubber and adhesives markets.  The company was founded in 1977 and is headquartered near Cleveland in Avon, OH (www.maroongroupllc.com). Maroon Group’s portfolio of companies include Addipel, CNX Distribution, D.B. Becker, Polyram USA, and U.S. Chemicals.

Joost Thesseling nf2“U.S. Chemical’s supplier and product portfolio will further strengthen Maroon Group’s position in the specialty chemical distribution market,” said Joost Thesseling, Managing Director at CI Capital. “We are very pleased with the progress that Maroon Group’s management team has made executing its acquisition strategy.  Our flexible approach to structuring acquisitions is rapidly establishing Maroon Group as an ‘acquirer of choice’ in the industry.”

CI Capital Partners invests from $25 million to $100 million in middle market companies in the following sectors: business services, consumer services, distribution, government services and defense, and light manufacturing. Since its founding in 1993, CI Capital and its portfolio companies have made more than 190 acquisitions representing over $8 billion in enterprise value. The firm is based in New York (www.cicapllc.com).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 5-5-16

Fifth Third Adds Co-Head to Capital Markets Team

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52 nf2Fifth Third Bancorp has hired William Tyson as co-head of Fifth Third Capital Markets. He will report to Lars Anderson, executive vice president and chief operating officer

William Tyson nf1Mr. Tyson will team with Bob Marcus, the other co-head of the group, on the strategic direction of the capital markets unit. Additionally, he will focus on driving the bank’s growth in merger and acquisition advisory services. M&A advisory services represent an expansion of capabilities and a growth area for Fifth Third Capital Markets. Mr. Tyson will also lead new initiatives to further develop the bank’s relationship with private equity companies.

“I am thrilled to join the Capital Markets team at Fifth Third,” said Mr. Tyson. “I have known Lars Anderson and Bob Marcus for decades and have always respected their level of commitment to their clients. I look forward to making an immediate contribution and helping the bank fully capitalize on its growth prospects.”

Mr. Tyson joins Fifth Third from BB&T Capital Markets, where he was a senior managing director and co-head of investment banking. Prior to his time at BB&T, he was a managing director at Wheat First Butcher Singer. Mr. Tyson holds a bachelor’s degree from the University of Virginia and he graduated from the executive program at the Darden School of Business at the University of Virginia.

“We are excited to add a leader with Bill’s experience and track record to Fifth Third,” said Mr. Anderson. “He brings extensive expertise that will directly add value to our existing client relationships and help us further establish high-quality relationships. His addition deepens our base of talent and we are excited about our prospects for future growth for our capital markets unit.”

Fifth Third Capital Markets services include investment banking, debt capital markets, bond capital markets, equity capital markets, financial risk management, and fixed income sales and trading. The group has offices in Atlanta, Charlotte, Cincinnati, Chicago, Cleveland, Dallas, Memphis, and Nashville. Click HERE for the Fifth Third Capital Market’s website.

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 5-5-16

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