Timepiece and Gemini Acquire Bag Balm

Timepiece and Gemini Acquire Bag Balm

bag balm nf1Vermont’s Original, a new company formed by Timepiece Capital and Gemini Investors, has acquired the assets of the Dairy Association Company.

Dairy Association Company manufactures Bag Balm, a salve used for soothing and softening chapped and chafed skin.  Originally created to soften cow udders, Bag Balm’s soothing qualities have gone from the barn for cows to being used by bikers, gardeners, hikers, quilters, and many individuals suffering or looking to prevent chapped or chafed skin. Bag Balm is sold in drug and grocery stores, farm stores, pet stores, hardware stores, and feed and tack shops.  The company was founded in 1899 and is based in Lyndonville, VT (www.bagbalm.com).

New York-based investment bank Young America Capital (www.yacapital.com) served as exclusive financial advisor to DAC in a transaction that resulted in a significant valuation for the company’s stakeholders.  “Bag Balm’s strong and growing brand recognition among consumers brought a sizable level of interest from consumer goods focused private equity firms”, said Stanley Tobin, Senior Director of Investment Banking, who spearheaded the transaction.

“We knew that being acquired by the right buyer was critical to Bag Balm’s future success. Young America lead our efforts and identified the perfect company,” said Barbara Norris Allen, the President of Dairy Association Company and the granddaughter of company founder, John Norris, Sr.

Timepiece Capital sponsors acquisitions or recapitalizations of lower middle market companies, typically with revenues under $25 million. Sectors of interest include manufacturing, distribution and service sectors. The firm was founded in 2004 and is headquartered in Scottsdale, AZ (www.timepiececapital.com).

Gemini Investors makes equity investments of $3 million to $8 million in companies with revenues of $10 million to $100 million and EBITDAs of at least $1 million. The firm is currently investing Gemini Investors V, LP, which has $200 million of committed capital. Gemini Investors was founded in 1993 and is based in Wellesley, MA (www.gemini-investors.com).

“We’re extremely pleased that our unique strategic approach resulted in a transaction that aligned the right players at the right time,” said Peter Formanek, Managing Partner at Young America Capital. “This deal offers an opportunity for the buyers to continue a great Vermont legacy while expanding the possibilities and availability of Bag Balm in a vast marketplace.”

2014 PEPD • Private Equity’s Leading News Magazine • 10-9-14

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