Vee Pak, a portfolio company of Wind Point Partners since March 2017, has acquired Cosmetic Essence Innovations (CEI), from Littlejohn & Co. which acquired an equity interest in the company in October 2010.
CEI is a provider of development services and contract manufacturing for fragrance, skin care, hair care and color cosmetics products. Customers of CEI include many of the largest and best-known brands in the beauty and personal care industry.
CEI was founded in 1984 and is headquartered in Holmdel, NJ with US production facilities in New Jersey, Pennsylvania, and Virginia, and an additional production facility in Stryków, Poland (www.cosmeticessence.com).
Vee Pak is a contract manufacturer of beauty and personal care products. The company’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 manufacturing and warehouse facilities in New Albany, OH and Chatsworth, CA. Vee Pak was founded in 1989 and is led by CEO Richard McEvoy (www.veepak.com).
The buy of CEI will broaden Vee Pak’s product offering, add to the company’s product development capabilities, and provide it with a coast-to-coast manufacturing network and an international presence. “CEI significantly strengthens Vee Pak’s strategic position in the marketplace,” said David Stott, Managing Director with Wind Point Partners. “Personal and beauty care brands continue to value manufacturing partners that bring new and exciting innovation concepts to the table and act as an extension of their supply chain.”
Wind Point invests from $50 million to $100 million in companies with EBITDAs of at least $10 million. Industries of interest include business services, consumer products and industrial products. In June 2017, Wind Point held a final closing of its eighth fund, Wind Point Partners VIII LP, with $985 million of capital commitments. The fund exceeded its initial hard cap of $750 million and marks the largest fund closing in Wind Point’s history. The firm was founded in 1984 and is based in Chicago (www.wppartners.com).
Littlejohn makes control and non-control investments in middle-market companies that are undergoing a fundamental change in capital structure, strategy, operations or growth. The firm invests from $50 million to $150 million of equity in middle-market companies that have annual revenues of $100 million to $800 million. Littlejohn invests across a range of industries and acquires manufacturers, distributors, and service providers. The firm is currently investing from Littlejohn Fund V which has $2 billion in capital commitments. Littlejohn is based in Greenwich, CT (www.littlejohnllc.com).
Houlihan Lokey (www.HL.com) was the financial advisor to CEI and Lazard Middle Market (www.lazard.com) advised Vee Pak.
© 2018 Private Equity Professional | November 14, 2018
