RoundTable Healthcare Partners said Monday it completed its buy of Santa Cruz Nutritionals from Levine Leichtman Capital Partners. Financial terms weren’t announced. Santa Cruz Nutritionals, of Santa Cruz, Calif., makes gummy vitamin, mineral, supplements and other nutraceutical products. The senior credit facilities were led by GE Capital.
LAKE FOREST, Ill., July 29, 2013 /PRNewswire/ — RoundTable Healthcare Partners (“RoundTable”), an operating-oriented private equity firm focused exclusively on the healthcare industry, announced today that it has completed the acquisition of Santa Cruz Nutritionals (“SCN”, “Santa Cruz” or the “Company”) from Levine Leichtman Capital Partners (“LLCP”). SCN, founded in 1968, is a leading manufacturer of gummy vitamin, mineral, supplement (“VMS”) and other nutraceutical products in the United States. Financial terms of the transaction were not disclosed.
Lester Knight, a Founding Partner and Co-Chairman of RoundTable, will serve as Chairman of the Board of Santa Cruz. Mike Westhusing, Chief Executive Officer, and Randy Bridges, Chief Financial Officer and Chief Operating Officer, will continue to lead the Company’s management team and will serve as members of the Board.
“We are very excited to partner with Santa Cruz,” said Lester Knight. “The gummy dosage formulation is extremely unique, in high demand and has significant room for growth. Mike and Randy have capitalized on this opportunity by building SCN into a market-leading, high quality manufacturer of these products. We look forward to working with them and their team to expand upon their current product offering to take advantage of positive market growth trends.”
Mike Westhusing stated, “RoundTable is the perfect partner for our company. As we continue to capitalize upon growth opportunities utilizing the gummy dosage format, RoundTable’s operating expertise, particularly in the disciplines of quality, regulatory and manufacturing, will be a key asset for us to draw upon.”
Randy Bridges commented, “Through our product development capabilities and focused sales and marketing efforts, we have achieved significant revenue growth over the last five years. We look forward to continuing to build upon our market-leading position as a best-in-class manufacturer of gummy nutraceuticals.”
RoundTable’s investment strategy targets companies in the healthcare industry that fall within the expertise and experience of the firm’s operating and transaction principals. Santa Cruz Nutritionals is RoundTable’s fourth platform investment from its $600 million Fund III.
As part of the transaction and to finance further growth opportunities for the Company, RoundTable facilitated the successful completion of new senior credit facilities and a private placement of senior subordinated notes. The senior credit facilities were led by GE Capital, Healthcare Financial Services. The senior subordinated notes were provided by RoundTable Capital Partners II (“Capital Fund II”) and a co-investor. Capital Fund II is RoundTable’s captive subordinated debt fund that makes fixed rate subordinated debt investments alongside the equity investments of RoundTable’s equity funds. Sidley Austin LLP acted as exclusive legal advisor to RoundTable in this transaction.
About Santa Cruz Nutritionals
Santa Cruz Nutritionals, headquartered in Santa Cruz, CA, is a leading manufacturer of gummy-based nutraceutical products in the United States. Through its proprietary formulations and unique manufacturing processes, Santa Cruz is able to deliver active ingredients through great-tasting, high quality chewable products. The Company has established itself as a leading player in all of its core markets and maintains longstanding relationships with many of the leading retailers and consumer product companies in the world. More information about Santa Cruz Nutritionals can be found at www.santacruznutritionals.com.
About RoundTable Healthcare Partners
RoundTable Healthcare Partners, based in Lake Forest, IL, is an operating-oriented private equity firm focused exclusively on the healthcare industry. RoundTable partners with companies that can benefit from its extensive industry relationships and proven operating and transaction expertise. RoundTable has established a successful track record of working with owner/founders, family companies, management teams, entrepreneurs and corporate partners who share a vision and believe in the value creation potential of its partnership model. RoundTable currently manages $1.9 billion in capital, including three equity funds totaling $1.5 billion and two subordinated debt funds totaling $400 million. More information about RoundTable Healthcare Partners can be found at www.roundtablehp.com
About Levine Leichtman Capital Partners
Levine Leichtman Capital Partners is a Los Angeles, California-based investment firm that manages approximately $6.5 billion of institutional investment capital through private equity partnerships, distressed debt and leveraged loan funds. LLCP is currently making new investments through Levine Leichtman Capital Partners V, L.P., Levine Leichtman Capital Partners SBIC Fund, L.P and Levine Leichtman Capital Partners Private Capital Solutions II, L.P. Prior investments by Levine Leichtman Capital Partners include Sequel Youth and Family Services, Interdent, CiCi’s Pizza, Hackney Ladish, Jon Douglas Real Estate Group and Quizno’s. More information about Levine Leichtman Capital Partners can be found at www.llcp.com.