CORE’s ANR Closes Third Add-On
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CORE’s ANR Closes Third Add-On

Monroe Capital, as sole lead arranger and administrative agent, provided senior debt to back the buy of Contract Filling by Arizona Natural Resources

Contract Filling’s products include perfume, cologne, hairspray, body mist, and deodorant sticks

SOURCE: Getty Images

Arizona Natural Resources, a portfolio company of CORE Industrial Partners, has acquired Contract Filling Inc., a contract manufacturer of fragrances, deodorants, and cosmetic products.

Contract Filling’s products include perfume, cologne, hairspray, body mist, and deodorant sticks. The company’s capabilities include compounding, long and short-run production, filling, and packaging.

CFI is one of the few manufacturers in the United States with the facility specifications, advanced manufacturing equipment, and safety certifications required to produce alcohol-based personal care products. CFI was founded in 1983 and operates a 45,000 sq. ft. facility north of Newark in Cedar Grove, New Jersey.

“ANR is continuing our expansion in the personal care and beauty market, and we continue to actively invest in the infrastructure, technology and human expertise needed to become the manufacturer of choice in this growing industry,” said ANR CEO Christine Staples. Ms. Staples. “I am excited about this opportunity to redefine the contract manufacturing industry and lead ANR in its next phase of success. With CFI, we have expanded our ability to serve customers worldwide and offer unmatched product innovation, formulation expertise, and manufacturing and logistics services.”

Arizona Natural Resources (ANR) is a contract manufacturer, formulator, and distributor of hair care, skincare, fragrance, and cosmetic products. The company’s services include formulation, batching, filling, quality assurance, packaging, and distribution.

The buy of CFI is ANR’s third addition to its ANR platform and follows the acquisitions of Marianna Beauty which operates a 400,000 sq. ft. Nebraska-based facility (May 2021), and Health Specialty which operates a 20,000 sq. ft. California-based facility (December 2021). With the buy of CFI, Phoenix-headquartered ANR now operates facilities in Arizona, California, Nebraska, and New Jersey with 70 filling lines and an aggregate 800,000 sq. ft. of production space.

According to CORE, the acquisition of CFI solidifies ANR’s position as one of North America’s largest manufacturers of personal care and beauty products and will expand ANR’s product portfolio in the high-end fragrance category.

“The acquisition of CFI further advances CORE’s vision to build a leading beauty and personal care contract manufacturing franchise serving both established and emerging brands,” said Frank Papa, a senior partner of CORE. “In addition, CFI is highly complementary to the ANR platform, extending our geographic reach with a presence on the East Coast and expanding our product portfolio by adding fragrances and deodorants. We are pleased to add CFI to ANR and will continue to pursue complementary acquisitions as we build out our nationwide platform.”

Monroe Capital was the sole lead arranger and administrative agent on the funding of a senior credit facility to support ANR’s acquisition of CFI. Monroe (NASDAQ: MRCC) provides senior and junior debt financing to middle-market businesses, special situation borrowers, and private equity sponsors. Investment types include unitranche financings; cash flow, asset-based, and enterprise value-based loans; and equity co-investments.

Monroe has $12.7 billion of assets under management across a range of strategies – including direct lending, asset-based lending, specialty finance, opportunistic and structured credit, and equity. The firm was founded in 2004 and is headquartered in Chicago with additional offices in Atlanta, Boston, Los Angeles, Miami, Naples, New York, San Francisco, and Seoul.

Chicago-based CORE makes control equity investments of up to $100 million in North America-based companies that have revenues of up to $200 million and EBITDA of up to $20 million. Sectors of interest include a range of specialty verticals within the manufacturing and industrial technology sectors.

© 2022 Private Equity Professional | September 20, 2022

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