Wind Point Partners has acquired Vee Pak, a contract manufacturer of beauty and personal care products.
Vee Pak’s major products include over-the-counter (OTC) topical drugs and sunscreens; viscous creams and lotions; and body washes, shampoos and conditioners. The company services numerous companies in the personal care industry spanning small boutique manufacturers to Fortune 500 companies. Vee Pak has 700,000 sq. ft. of total manufacturing and distribution capabilities and operates an OTC-certified manufacturing facility in Countryside, IL; a distribution center in Hodgkins, IL (headquarters); and a manufacturing and distribution center in New Albany, OH. Vee Pak was founded in 1989 by Ralph Vennetti (www.veepak.com).
“The Vennettis and their team have built a terrific business, bearing many of the hallmarks we have found to be differentiating among contract manufacturers,” said David Stott, a Principal at Wind Point. “Furthermore, the health and beauty categories in which Vee Pak participates have attractive growth characteristics favoring flexible and innovative manufacturers.”
At the closing of this transaction, Wind Point named Scott Almquist the new CEO of Vee Pak. Mr. Almquist is a 30-year veteran of the consumer-packaged goods industry. Most recently, he was the Chief Customer Officer & President of Retailer Brands at Sun Products, a provider of laundry detergent, fabric softeners and other household products and a portfolio company of Vestar Capital Partners. Vestar sold Sun Products to Henkel AG & Co. in September 2016. Prior to Sun Products Mr. Almquist held senior executive positions at Procter & Gamble and The Evenflo Company.
Wind Point invests from $20 million to $70 million of equity in companies with revenues from $100 million to $500 million and EBITDAs of at least $8 million. Industries of interest include business services, consumer products, healthcare and industrial products. Wind Point Partners was founded in 1984 and is based in Chicago (www.wppartners.com).
Wind Point has made a number of investments in contract manufacturing companies, specifically in the contract food manufacturing sector. Gehl Foods was acquired in March 2015 and is a current portfolio company; Shearer’s Foods was acquired in August 2012 and was sold to Ontario Teachers’ Pension Plan in January 2015; and Hearthside Food/Ryt-Way Industries was acquired in August 2008 and sold in March 2014 to Goldman Sachs and Vestar.
Financing for the transaction was provided by Bank of America Merrill Lynch, KKR, Voya Investments, and LBC Credit Partners. Alvarez & Marsal provided transaction advisory services on the acquisition.
© 2017 Private Equity Professional | March 10, 2017
