Neways Enterprises, Utah-based maker of dietary supplements and personal care products, has completed an out-of-court restructuring to reduce its debt, the company announced. As a result of the transaction, private equity firm Z Capital Partners and funds affiliated with S.A.C. Capital Advisors will own a majority of Neways. Golden Gate Capital will maintain an equity stake, the company said. Terms of the deal were not released.
Neways Enterprises, a worldwide leader in dietary supplements and personal care products, announced today that it has completed a comprehensive out-of-court restructuring, allowing the company to significantly reduce its debt. As a result of the transaction, private equity firm Z Capital Partners, L.L.C. and funds affiliated with S.A.C. Capital Advisors, L.P. will in the aggregate own a majority of Neways. Golden Gate Capital will maintain an equity stake in the Company.
“We are pleased to have completed our restructuring and we appreciate the commitment that all our distributors, employees and vendors have clearly demonstrated throughout this process,” said Neways chief executive officer Scott St. Clair. “By eliminating a substantial portion of our debt, we have built a solid financial foundation that will allow us to significantly enhance our operating flexibility and further grow our business. I look forward to working with Z Capital, S.A.C. and other members of the ownership group towards achieving that goal.
“We have just concluded a fantastic year highlighted by our entrance into the Korean market,” St. Clair continued. “As we begin 2012, we remain on track to launch in Thailand and will pursue other exciting growth initiatives as opportunities arise. Further, our new capital structure will allow us to devote additional resources to developing exclusive products and IT tools, continuing to make progress on our path to environmental and social leadership, as well as preparing for our biggest-ever global reward trip to celebrate Neways’ 25 years of success in 2012. Neways truly has a bright future and we look forward to continuing to serve all our distributors across the world for many years to come.”
James J. Zenni, President and Chief Executive Officer of Z Capital, said, “We are excited to become shareholders of Neways at this exciting time for the Company. The restructuring has established a strong foundation for the Company and we are pleased to support Scott St. Clair and his team as they move the business forward.”
In November 2011, Neways announced that it was in active and constructive discussions with its lenders to refinance the Company’s capital structure. Today’s announcement represents a successful culmination of that process.
Representatives of Z Capital and S.A.C. Capital will join the Neways Board of Directors.
Neways Enterprises retained Kirkland & Ellis LLP as legal counsel and Peter J. Solomon Company as financial advisor.
Neways is dedicated to helping families transform their homes into Healthy Homes. With over 200 safe and effective nutritional and personal care products that are free of more than 3,000 questionable ingredients, the company has strived to make the world a healthier place, one home at a time.
In addition to providing exclusive products for 25 years, Neways enhances people’s lives with a home-based business opportunity. Several hundred thousand active Neways distributors share the products in 29 countries, with nearly half of the company’s annual revenues paid back to distributors as commissions.
About Z Capital Partners
Z Capital Partners, L.L.C. is a leading, privately held Chicago-based middle market private equity firm that specializes in repairing the capital structures and optimizing the assets of distressed/challenged companies. Industries of interest include, but are not limited to, consumer products, steel, steel processors, agricultural, gaming, leisure/real estate, manufacturing, specialty services and automotive. Z Capital’s investors include prominent global endowments, financial institutions, pension funds, insurance companies, foundations, family offices, and wealth management firms. For more information, please visit www.zcap.net
About S.A.C. Capital Advisors
S.A.C. Capital Advisors, L.P. is a private asset investment firm with over $13 billion in assets under management.