Resilience Sells Brands to Scott’s

CR Brands, a portfolio company of Resilience Capital Partners, has sold its Biz Stain & Odor Eliminator (Biz) and Dryel product lines to publicly traded Scott’s Liquid Gold.

The purchase price for the two product lines is $9.25 million including $1.2 million of finished inventory. An earn-out tied to the initiation of sales to a major retailer is also part of the agreement. In 2019 the combined sales of Biz and Dryel totaled $11.2 million with a gross profit of $4.7 million (a 42% gross profit margin).

CR Brands was formed in 2006 by Allied Capital through the merger of ChemPro (brands included Mean Green, Pine Power, and Magnum Power) with Redox Brands (brands included Biz and Oxydol). Juggernaut Capital acquired CR Brands in 2009 and in September 2012, Resilience acquired CR Brands from Juggernaut.

With the sale of Biz and Dryel to Scott’s Liquid Gold, many of CR’s products have been sold off with the exception of licensed brands Arm & Hammer (wipes, fruit and vegetable wash, and garbage disposal cleaners, and OxiClean (stain remover pens).

“The CR Brands team has successfully positioned Biz and Dryel for growth under their new ownership,” said Bassem Mansour, co-CEO of Resilience. “This transaction will enable CR Brands to focus on initiatives to drive the continued growth of its remaining portfolio of licensed cleaning products with superior formulations under the Arm & Hammer and OxiClean brand names.”

“We are thrilled to bring two more high-quality, high-value brands into the Scott’s portfolio,” said Mark Goldstein, CEO of Scotts Liquid Gold. “Biz is the top-performing laundry additive in the market, and Dryel is the market leader in the at-home dry cleaning category. Both brands’ strong national retail presence, loyal customer following, and the ability to out-perform the competition made them a perfect fit with the rest of Scott’s brands.”

Scott’s Liquid Gold (OTC: SLGD) develops, markets, and sells household and personal care products under an array of brands including Scott’s Liquid Gold (wood and floor care); Kids N Pets and Messy Pet (stain and odor removal); Prell and Denorex (haircare); and Alpha (skincare). Scott’s Liquid Gold was founded in 1954 and is headquartered near Denver in Greenwood Village, Colorado.

Resilience Capital Partners invests from $10 million to $40 million in middle-market companies with $25 million to $250 million in revenues and EBITDA typically under $20 million. Sectors of interest include industrial manufacturing, distribution, business services, aviation & aerospace, minerals & mining, consumer goods, transportation logistics, building products, metals, and capital equipment. The firm was founded in 2001 and is based in Cleveland.

CR Brands is led by CEO Tim Harrison and is headquartered north of Cinncinati in West Chester, Ohio.

BellMark Partners was the financial advisor to Resilience and CR Brands on this transaction.

Private Equity Professional | July 21, 2020

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