Wind Point Partners has acquired Hodgkins, Illinois-based Vee Pak Inc, a co-maker of beauty and personal care products for top industry brands. No financial terms were disclosed. Bank of America Merrill Lynch, KKR and Voya Investments provided the financing for the deal.
CHICAGO, IL, MARCH 9, 2017 – Wind Point Partners, a Chicago-based private equity firm, announced today that it has acquired Vee Pak, Inc. (“Vee Pak”). Based in Hodgkins, Illinois, Vee Pak is a fully integrated co-manufacturer of beauty and personal care products for leading industry brands. The Company operates two manufacturing facilities, one in Illinois and one in Ohio, supplying beauty and skin care, hand and body soaps, lotions and creams, over-the-counter (“OTC”) topical drugs, sun care and hair care products. Founded in 1989 by Ralph S. Vennetti, Vee Pak has grown and diversified under the leadership of his sons, Ralph A., Mike, and Dave Vennetti.
David Stott, Principal at Wind Point, commented, “We are very excited to add Vee Pak to the Wind Point portfolio. The Vennettis and their team have built a terrific business, bearing many of the hallmarks we have found to be differentiating among contract manufacturers. Furthermore, the health and beauty categories in which Vee Pak participates have attractive growth characteristics favoring flexible and innovative manufacturers.”
David added, “We are equally excited to be partnering with Scott Almquist, who will become CEO of Vee Pak. In partnership with Scott, Wind Point is committed to maintaining the standard of excellence to which Vee Pak’s customers are accustomed, while investing in the capabilities, capacity, and geographic reach that will make Vee Pak best in class.”
Scott brings a 30-year career in consumer-packaged goods (“CPG”), where he has held executive leadership roles at established and emerging private equity-backed consumer products companies. Most recently, Scott served as Chief Customer Officer & President of Retailer Brands at Sun Products Corporation, where he led profitable sales growth achieved through strategic partnership with top retail customers. Prior to Sun Products, Scott held senior executive and commercial leadership roles at Procter & Gamble and The Evenflo Company.
“I am honored and delighted to have the opportunity to work with Vee Pak and Wind Point Partners. The Vennetti family and their dedicated associates have done an outstanding job of building a world-class contract manufacturing company. I look forward to working closely with the talented Vee Pak team and our customers to build on the current foundation of the Company and take the business to the next level,” stated Scott Almquist.
Ralph Vennetti commented, “On behalf of my family and the dedicated employees we have at Vee Pak, we are very pleased to be partnering with Scott and the folks at Wind Point Partners. Wind Point’s commitment to our people, their success with businesses like ours and their philosophy of investing to support our customers’ growth were important factors in our decision. Vee Pak is a special part of our family and we are very excited about what the future holds for the business.”
On the Board of Directors, Scott will be joined by David Stott and Nathan Brown from Wind Point, as well as CPG industry veterans Jamie Egasti, John Rice, Steven Stanbrook, and David White. These executives bring a combined 150 years of industry experience creating value in senior leadership roles at Procter and Gamble, Unilever, SC Johnson, Campbell’s Soup, and Catalina Marketing. They bring strength in highly relevant areas such as marketing, innovation, and supply chain to the Board. In addition, Wind Point is pleased that Ralph A. Vennetti will represent his family as a member of the Board, providing continuity and valuable historical perspective. Jamie Egasti, who will serve as Non-executive Chairman, commented, “I am excited to be working with Scott and the team at Wind Point, as well as the rest of the Vee Pak Board. Vee Pak has a tremendous opportunity to grow with its customers, building on its strong foundation to become a leader in the industry as a full-service contract manufacturer.”
Financing for the transaction was provided by Bank of America Merrill Lynch, KKR, Voya Investments, and LBC Credit Partners. Kirkland & Ellis represented Wind Point as legal counsel and Alvarez & Marshall provided transaction advisory services on the acquisition.
About Wind Point Partners
Wind Point Partners is a private equity investment firm that has raised over $3 billion in commitments since 1984. Wind Point focuses on partnering with top caliber management teams to acquire middle market businesses where it can establish a clear path to value creation. Additional information about Wind Point is available at www.windpointpartners.com.
Wind Point is an active investor in the co-manufacturing consumer products industry. Select recent investments include Gehl Foods, Shearer’s Foods, Hearthside Food Solutions, and Ryt-Way Industries.
About Vee Pak
Founded in 1989, Vee Pak is a fully integrated contract manufacturer of personal and beauty care products, including cosmetic and OTC-certified skin care, bath and shower, hair care and sun care products. Headquartered outside of Chicago, the Company operates an OTC-certified manufacturing facility in Countryside, Illinois, a state-of-the-art distribution center in Hodgkins, Illinois and a manufacturing and distribution center in New Albany, Ohio. Vee Pak seeks to deliver for its customers the highest quality products, leveraging its flexibility, R&D capabilities and supply chain expertise. Additional information about Vee Pak is available at www.veepak.com.