Dispensing Dynamics Buys Colman Group

Kinderhook Industries portfolio company Dispensing Dynamics International has acquired The Colman Group. Terms of the deal were not released. Dispensing Dynamics is a provider of proprietary plastic injection molded paper towel, tissue, soap, and air care dispensing systems for the “away-from-home washroom industry.” Kinderhook Industries is a private equity firm with $770 million of committed capital.

PRESS RELEASE

Kinderhook Industries, LLC announced today the acquisition of The Colman Group, Inc. (dba “San Jamar-Chef Revival”) by Dispensing Dynamics International, Inc. (“DDI” or the “Company”), an existing portfolio company. Financial terms of the transaction were not disclosed. This transaction represents the 23rd follow-on acquisition completed by Kinderhook Industries’ portfolio companies in the past three years.

Based in City of Industry, California, DDI is the leading global provider of proprietary plastic injection molded paper towel, tissue, soap, and air care dispensing systems for the away-from-home (“AFH”) washroom industry. Owned by Kinderhook Capital Fund I since 2007, DDI has over 75 years of experience introducing innovative market leading products for AFH washrooms. Today, DDI is an integral partner in the new product development initiatives of the world’s largest producers of towel and tissue products.

Based in Elkhorn, Wisconsin, San Jamar-Chef Revival is a global leader in the distribution of branded innovation across five key product categories including Disposable Dispensing, Food Safety Tools, Bar & Food Management, Hand Safety, and Foodservice Apparel for the AFH industry. The Company’s broad product offering provides a “one-stop-shop” for its customers, accessible through a foodservice and janitorial distributor network which has become increasingly important as customers consistently look for ways to consolidate their vendor bases.

“The integration of San Jamar-Chef Revival into DDI is an exciting opportunity to broaden the Company’s distribution network and accelerate its growth,” said Dean deBuhr, Chairman and CEO. “The acquisition will cement the Company’s strategic goal of being the dominant, full-service, provider to the global AFH washroom market.”

Paul Cifelli, Managing Director at Kinderhook Industries said, “We are very excited to acquire San Jamar-Chef Revival, a recognized leader the AFH industry, due in large part to its exceptional management team and world class distribution network. This acquisition represents a pivotal point in DDI’s history as the combination of DDI’s product innovation and technology with San Jamar-Chef Revival’s distribution network positions the Company for accelerated future growth.”

Mr. deBuhr highlighted that, “The Company’s vision has always been to supply innovative new products to propel our customer’s business growth. With the acquisition of San Jamar, the Company will be the largest manufacturer of value-added proprietary washroom dispensing systems worldwide and our customers will be provided with a comprehensive platform to meet their distribution needs.”

Financing for the transaction was provided by U.S. Bank, GE Antares Capital, Fifth Third Bank, NewStar Financial, and Stearns Bank. Kirkland & Ellis LP served as legal counsel to Dispensing Dynamics International, Inc. Robert W. Baird & Co. served as exclusive financial advisor to San Jamar-Chef Revival. Godfrey & Kahn served as legal advisor to The Colman Group.

About Kinderhook Industries

Founded in 2003, Kinderhook Industries is a private equity firm with $770 million of committed capital and an investment philosophy based on combining senior management and operating experience in a variety of industries with the financial and investment know-how of private equity professionals. Kinderhook primarily makes control investments in companies with transaction values of $10-$75 million in which the firm can achieve significant financial, operational and growth improvements. The firm targets orphaned non-core subsidiaries of corporate parents, existing small capitalization public companies lacking institutional support and management-led recapitalizations of entrepreneur-owned companies. By providing access to capital, strategic advice and an extensive network of relationships, Kinderhook Industries has a history of successfully building privately held firms in partnership with management.