Kinderhook Industries has sold its portfolio company IAX Acquisition Corporation, parent company of Absorption Corp., to J. Rettenmaier & Söhne Group.
Absorption Corp. is a manufacturer of organic fiber products primarily used for small-animal bedding and litter. The company’s portfolio of brands includes CareFRESH, Healthy Pet, and CritterCare and its products are sold at pet-specialty stores, mass merchandisers and grocery chains throughout North America, Europe and Australasia. The company is headquartered in Ferndale, WA (www.absorptioncorp.com).
Kinderhook acquired Absorption in 2010 and the sale, including prior distributions, will result in a return on invested capital of approximately 2.4x for Kinderhook Capital Fund III. The sale of Absorption is the first realization in this fund.
Kinderhook’s guidance and support has been instrumental in getting Absorption to this important day,” said Ted Mischaikov, CEO of Absorption Corp. “Our partnership with Kinderhook has been tremendously beneficial to the company and will continue to pay dividends for Absorption for many years to come.”
Kinderhook Industries is a manager of private equity funds with $770 million of committed capital. Kinderhook primarily makes control investments in companies with transaction values of $25 million to $100 million in which the firm can achieve financial, operational and growth improvements. Kinderhook pursue private equity investments in non-core divisions of public companies, management buyouts of entrepreneurial-owned businesses, troubled situations and existing small capitalization companies lacking institutional support. The firm is based in New York (www.kinderhook.com).
“Kinderhook is very proud of the accomplishments of the company’s management team and hard-working employees over the past three years,” said Tom Tuttle, Managing Director at Kinderhook. “Ted Mischaikov and his team have successfully expanded Absorption’s market-leading bedding products into new channels and geographies, and launched several new, innovative products for the small animal market. Additionally, they have concurrently improved both product quality and company profitability, which is truly exceptional. Absorption has a bright future ahead of it, especially under its new strategic partnership with J. Rettenmaier & Söhne Group.”
J. Rettenmaier & Söhne Group (JRS) is a manufacturer of organic fibers made from plant raw material, for use in a range of applications within the pet care, food, nutrition, pharmaceutical, chemicals and construction industries. The company’s pet care offerings include pet litter and pet bedding products. JRS was founded in 1878 and is headquartered in Rosenberg, Germany. The company operates 23 facilities in 20 countries throughout the world (www.jrs.de).
Harris Williams & Company served as exclusive financial advisor to Absorption Corp. and Kirkland & Ellis served as its legal counsel.
© 2013 PEPD • Private Equity’s Leading News Magazine • 3-15-13