Capstone Financial Group Inc. (OTCBB: CAPP), an investment and merchant banking group, announced that it has cemented the rights to advise and raise $130 million in financing for Twinlab Corp., a leading manufacturer of high quality, science-based nutritional supplements. The deal supports the company's plans for a management buyout and future acquisitions.
"We are excited to play such an integral role in the growth of Twinlab, under Tom Tolworthy's guidance," said George Schneider, Capstone Financial Group president and chief investment officer. "By providing significant capital and financial advice, our goal is to help the company expand in the health, wellness, and nutritional supplement markets."
The newly created acquisition vehicle, Twinlab Consolidation Corp., will use approximately $106 million in net proceeds to acquire certain assets of today's Twinlab and three strategic acquisitions. Those being bought out will then participate in a minority position in the acquisition vehicle. Shareholders include prominent individuals, including Amway Corp. heir David Van Andel and others.
"Capstone Financial Group and the outstanding team that CEO Darin Pastor has assembled in Irvine have proven to be excellent partners," said Tolworthy, Twinlab chief executive.