U.S. private equity firm CCMP Capital Advisors and another Jamieson Wellness Inc shareholder have increased the size of their secondary offering of shares. They plan to offer about 13 million shares at a price of 18.50 per unit, generating about $240.9 million in gross proceeds, not including the greenshoe option. That is up from a prior target of about $150.2 million. CCMP, which bought Jamieson in 2014, will as a result reduce its stake from 39.2 percent to 4.7 percent or, if the greenshoe option is exercised, to zero. Jamieson, a Canadian vitamin and natural health products company, went public in July.
CCMP Capital Advisors, LP and Jamieson Wellness Inc. Announce Increase to Previously Announced Secondary Bought Deal Financing to C$241 Million
Reduces CCMP Capital Advisors, LP Ownership Interest in Jamieson Wellness Inc. to approximately 4.7% down from 39.2%
TORONTO, ONTARIO–(Marketwired – Oct. 3, 2017) –
Jamieson Wellness Inc. (TSX:JWEL) (“Jamieson” or the “Company”) and certain funds (“CCMP”) to which investment advisory services are provided by CCMP Capital Advisors, LP and Dr. Louis J. Aronne (together with CCMP, the “Selling Shareholders”) have announced today that, due to strong demand, the Selling Shareholders have increased the size of the previously announced secondary offering to 13,020,000 common shares (the “Common Shares”), at a price of $18.50 per Common Share for gross proceeds of $240,870,000 (the “Offering”). CCMP will be selling a total of 13,000,000 common shares and Dr. Louis J. Aronne will be selling a total of 20,000 common shares. The Offering is led by BMO Capital Markets and RBC Capital Markets. CCMP has granted the Underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the Offering, to purchase up to an additional 1,758,751 common shares to cover over-allotments, if any. The Offering is expected to close on or about October 18, 2017 and is subject to the Company receiving all necessary regulatory approvals.
The proceeds from the Offering will be paid to the Selling Shareholders. The Company will not receive any proceeds from the Offering, or over-allotment option, if exercised.
The Common Shares will be offered by way of a short form prospectus in all of the provinces and territories of Canada and may also be offered by way of private placement in the United States.
Upon completion of the Offering, CCMP will own approximately 1,758,751 common shares, representing an approximate 4.7% ownership interest in the Company, down from 39.2% at the time of the Company’s initial public offering in July of 2017. If the over-allotment option is exercised in full, CCMP will no longer hold an ownership interest in the Company.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
The Company reaffirmed its outlook that was included in its Q2 management’s discussion and analysis of financial condition and results of operations in its final prospectus (the “Prospectus”) dated June 29, 2017 in respect of its initial public offering, and continues to expect pro forma revenue(1) in the range of $303 to $310 million and pro forma Adjusted EBITDA(1) of $62 million in 2017.
(1) Pro forma 2017 revenue and Adjusted EBITDA assumes the acquisition of Body Plus Nutritional Products Inc. (“Body Plus”) and Sonoma Nutraceuticals Inc. (“Sonoma”) occurred on January 1, 2017 and thus includes the estimated contribution of the acquired business for the full 12 months of fiscal 2017. On a statutory basis and excluding the pre-acquisition results for Body Plus and Sonoma, the Company expects 2017 revenue of $299 to $306 million and Adjusted EBITDA of $61.4 million.
About CCMP Capital Advisors
CCMP Capital Advisors specializes in middle market buyouts and growth equity investments of $100 million to $500 million in North America and Europe. CCMP Capital Advisors focuses on generating alpha through the operational transformation and growth of its portfolio companies. With offices in New York, Houston and London, CCMP Capital Advisors invests in three primary industries: Consumer/Retail, Industrial, and Healthcare. Selected investments include: Truck Hero, Badger Sportswear, The Hillman Group, Jamieson Laboratories, Jetro Cash & Carry, Milacron, PQ Corporation, Pure Gym, Shoes For Crews, Generac and Edwards.
About Jamieson Wellness
Jamieson Wellness is dedicated to improving the world’s health and wellness with its portfolio of innovative natural health brands. Established in 1922, Jamieson Vitamins is the Company’s heritage brand and Canada’s #1 consumer health brand. Jamieson Wellness manufactures and markets sports nutrition products and specialty supplements under its Progressive, Precision and Iron Vegan brands. The Company also markets products by Lorna Vanderhaeghe Health Solutions (LVHS), the #1 women’s natural health focused brand in Canada. For more information please visit jamiesonwellness.com.
Andrew Cole / Brooke Gordon / Hayley Cook
Sard Verbinnen & Co
CCMP Capital Advisors, LP
Scott Van Winkle
Jamieson Wellness Inc.
Jamieson Wellness Inc.
Photo courtesy of Reuters/Mark Blinch