Victory Park Capital Buys Fuller Brush

Victory Park Capital has acquired the consumer assets of The Fuller Brush Company Inc., a bankrupt manufacturer and provider of in-home and commercial cleaning products. The deal was approved by the United States Bankruptcy Court. Terms were not disclosed.The company also announced that it has sold it non-consumer assets to Innovative Livestock Services Inc. FocalPoint Securities served as exclusive investment banker to Fuller.

Great Bend, KS – The Fuller Brush Company, Inc. (“Fuller” or the “Company”) has sold substantially all of its consumer assets to affiliates of Victory Park Capital (“VPC”) and its non-consumer assets to Innovative Livestock Services, Inc. (“ILS”) pursuant to §363 of the Bankruptcy Code. The transaction was approved by the United States Bankruptcy Court in the Southern District of New York on October 19, 2012 and closed on November 30, 2012. FocalPoint Securities, LLC served as exclusive investment banker to Fuller.

During its work with Fuller, FocalPoint marketed the operating assets to financial and strategic buyers while also exploring a range of potential alternative solutions for the Company and its stakeholders. Ultimately, it was determined that a two-part sale consisting of ILS acquiring Fuller’s non-consumer related business and VPC retaining the well-known consumer portion of the business would generate the highest and best value for the Company’s creditors and put the respective businesses in the best position to be successful moving forward. “The combined transaction with ILS and VPC positions both parts of the business to grow and thrive, while also preserving jobs in the Great Bend area. FocalPoint’s tireless efforts to push the transaction forward were invaluable and this outcome could not have been achieved without their contribution”, stated Lawrence Perkins, Senior Managing Director of Conway MacKenzie and Chief Restructuring Officer of Fuller.

Alexander Stevenson, Managing Director at FocalPoint commented, “The transactions involved not only the sale of assets but the negotiation of complex series of transition and supply agreements between ILS and VPC that were critical to closing the acquisition. We were very pleased with the outcome of the case and to have had the opportunity to work with such a committed and thoughtful CRO and management team and play a role in helping to restore the iconic Fuller Brush name. Without the management team’s ability to effectively manage the business during the Bankruptcy, the transactions would not have been possible.” Chad Peterson, of Victory Park added, “FocalPoint and the other professionals did a great job in managing a very complex process to completion. We look forward to working with them again and to a profitable relationship with ILS that builds on the remarkable history of the Fuller consumer brands in the years to come.”

In addition to FocalPoint and Conway MacKenzie, other professionals involved in the transaction included Herrick, Feinstein LLP (Bankruptcy Counsel to Fuller); Katten Muchin Rosenman LLP (Counsel to VPC); Proskauer Rose LLP (Counsel to ILS); Kelly Drye & Warren LLP (Counsel to the Committee) and CBIZ MHM, LLC (Financial Advisor to the Committee).

About The Fuller Brush Company
Located in Great Bend, KS, Fuller is a leading manufacturer and provider of in-home and commercial cleaning products, as well as personal care products and industrial brushes. The Company has a 100-plus year history dating back to its origins as the original doo-to-door sales company. In the 1940’s, it is estimated that the iconic “Fuller Brush Man” visited over 90% of the homes in America on a regular basis. More recently, Fuller has expanded its offering to include cleaning solutions and hard-good products for commercial cleaning purposes as well as custom brush applications serving a variety of industrial end markets ranging from aerospace to agricultural equipment. Fuller employs nearly 200 people and operates out of a 600,000 sq ft manufacturing facility in Great Bend and will continue to do so pursuant to this transaction

About FocalPoint Securities, LLC
FocalPoint is an independent investment bank, specializing in mergers and acquisitions, private placements (both debt and equity), financial restructurings and distressed transactions. The firm has a dedicated special situations capability that brings together all aspects of the firm’s expertise to help our clients and their stakeholders develop creative solutions to complex business and financial challenges. The firm serves middle market clients throughout the U.S.