home products

Onex Exits RSI Home Products

by

Onex Corporation has completed the sale of its 50% interest in RSI Home Products to the company for $323 million.

The Onex Group made a $318 million preferred equity investment in RSI in October 2008. The Onex Group has received proceeds of $471 million, including prior distributions, which results in a multiple of invested capital of approximately 1.5 times and an 11% rate of return. Onex’ portion of the proceeds is $186 million, including the prior distributions.

RSI Home Products is a manufacturer of kitchen and bath cabinetry sold through home centers, kitchen and bath dealers, and other distributors. RSI employs approximately 4,000 people in its facilities in California, Kansas, North Carolina, Texas, Mexico and China. The company is headquartered in Anaheim, CA (www.rsiholdingcorp.com).

Onex Corporation makes private equity investments through the Onex Partners and the ONCAP families of funds. Onex has more than $14 billion of assets under management and is based in Toronto (www.onex.com).

“We’re pleased to have invested alongside RSI’s founder and management team and we wish them continued success,” said Anthony Munk, a Managing Director of Onex.

© 2013 PEPD • Private Equity’s Leading News Magazine • 2-25-13

Palladium Equity Partners Acquires Hy Cite

by

Palladium Equity Partners has completed a recapitalization of Hy Cite Enterprises in partnership with Hy Cite’s founding family and management team.

Hy Cite is a direct selling and consumer finance company focused primarily on the Hispanic market in the US and Mexico.  Hy Cite’s products are sold under the Royal Prestige® and NutraEase™ brands and include cookware, china, crystal, flatware, cutlery, water and air filtration systems, and juice extractors.  The company’s products are sold in the US, Mexico and other international markets through a network of over 3,000 authorized distributors that personally demonstrate the products directly to consumers in their homes, as well as at national venues such as bridal, houseware, and consumer shows.  The company is headquartered in Madison, WI (www.hycite.com).

Hy Cite will continue to be led by members of its founding family, Erik Johnson, Chairman and Chief Executive Officer; and Peter Johnson, Jr., Chief Operating Officer; as well as by its current management team.  David Perez and Luis Zaldivar of Palladium will join Hy Cite’s Board of Directors.

“We are excited to be partnering with Palladium, a firm with substantial experience supporting companies in their continued growth.  Palladium is an ideal partner for Hy Cite given the firm’s deep knowledge of the Hispanic market, its significant experience with consumer finance companies and its successful history of working with family businesses.  By partnering with Palladium we are strongly positioned to continue executing our expansion plan,” said Mr. Johnson.

Palladium Equity Partners targets investments in business services companies as well as in financial services, consumer/retail, food/restaurants, healthcare, industrial, and media businesses. Palladium has a focus on companies that operate in the US Hispanic market. The principals of Palladium have invested over $1.5 billion of equity in 50 portfolio companies over the last two decades.  The firm was founded in 1997 and is based in New York (www.palladiumequity.com).

“We believe that Hy Cite has a terrific management team, an extraordinary growth trajectory and a tremendous opportunity to expand its footprint.  The Johnson family has built the highly regarded Royal Prestige® brand that stands for superior quality and innovation in cookware.  In our view, Hy Cite has significant growth potential domestically and internationally and we are thrilled to be working with management on a range of new initiatives to support the continued growth of the company in the years ahead,” said Luis Zaldivar, a Managing Director at Palladium.

McColl Partners, a mid-market investment bank, served as Hy Cite’s financial advisor. The firm is based in Charlotte, NC with additional offices in Dallas, Atlanta and Los Angeles (www.mccollpartners.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 1-17-13