Swander Pace Capital (SPC) has completed the sale of Reliance Vitamin to Impetus Wellness Group, a new platform company formed by AEA Investors.
Reliance Vitamin was acquired in October 2017 by Branch Brook Holdings, a partnership between Swander Pace Capital, Jefferson Capital, and United Natural Foods. This partnership, formed in 2012, was created to invest in organic and specialty consumer product companies.
Reliance Vitamin is a formulator and contract manufacturer of private label and custom vitamins, minerals, and supplements (VMS), specializing in plant-based proteins, probiotics, and hydration supplements. Headquartered in Edison, New Jersey, the company was founded by Phil Vigeant in 1979 and is currently led by CEO Linda Naselli.
“The strategic investments made under SPC’s ownership have strengthened Reliance’s position as a key player in the nutritional supplement industry, setting the stage for continued growth and innovation under Impetus’s stewardship,” said Ms. Naselli.
“It has been a privilege to partner with the Reliance team,” said Alex Litt, a director at SPC. “The team’s commitment to quality and their ability to deliver new and exciting innovation has been impressive. We wish the Reliance Vitamin team well and are confident they will continue to deliver strong results in the years to come.”
AEA Investors formed Impetus Wellness Group in September 2024 as a platform to invest in contract manufacturers within the vitamins, minerals, and supplements (VMS) industry. Impetus typically targets VMS companies with revenues between $30 million and $250 million and EBITDA ranging from $5 million to $25 million.
The platform’s executive team includes Robert “BK” Kaminski, Executive Chairman of Impetus and former CEO of Leiner Health Products; Andy Greenawalt, Impetus board member and operational advisor and former CEO of Emerson Ecologics; and Chris Testa, CEO of Impetus and former President of UNFI.
“The Reliance team has successfully navigated recent industry challenges, emerging as a premier player in the VMS CMO space,” said Mr. Testa. “Reliance has built an impressive portfolio of natural channel customers and partnerships with some of the largest CPG and retail brands in the country. Its commitment to quality, service, and innovation aligns perfectly with our vision. We look forward to working together to create a platform to capitalize on the exciting opportunities ahead.”
“We are thrilled to launch the Impetus platform with Reliance Vitamin,” said Ben Althaus, a partner at AEA. “With the experienced leadership of BK, Andy, and Chris, we believe Impetus is well positioned to capitalize on opportunities in the highly fragmented VMS market, and we look forward to leveraging our combined expertise to support the long-term growth of Reliance and other strong businesses in the space moving forward.”
AEA Investors focuses on three sectors – value-added industrials, consumer, and services – and employs 70 investment professionals at its headquarters in New York City, with additional offices in Connecticut, London, Munich, and Shanghai. Founded in 1968 by the Rockefeller, Mellon, and Harriman family interests, along with S.G. Warburg & Co., AEA has a long history of successful investments.
Swander Pace Capital specializes in investing in middle-market consumer products companies with revenues of up to $500 million. The firm’s sectors of interest include food and beverage, body and wellness, and home and family. Since its founding in 1996, Swander Pace has invested in over 65 companies and raised more than $2.2 billion in capital. The firm is headquartered in San Francisco, with additional offices near New York City in Bedminster, New Jersey, and near Toronto in Mississauga, Ontario.
“The Reliance Vitamin result is a great example of SPC’s consistent ability to work with founders and management teams to drive growth and innovation in dynamic and compelling categories,” said Andrew Richards, the founder, CEO, and managing director of SPC. “We continue to invest in our core categories, allowing us to leverage our deep category understanding and apply that knowledge to each investment.”
SPC has a track record of investments in the VMS and over-the-counter sectors, with previous investments including Insight Pharmaceuticals (2010-2014), Santa Cruz Nutritionals (2011-2017), Renew Life (2013-2016), Clarion Brands (2014-2017), Captek Softgel (2015-2021), Swanson Health Products (2016-2020), Mommy’s Bliss (2018), and Functional Formularies (2020).
Lincoln International served as the financial advisor to Reliance Vitamin on this transaction.
© 2024 Private Equity Professional | September 17, 2024
