NEW YORK, Feb 06, 2006 /PRNewswire via COMTEX/ -- MidOcean Partners, a New York and London- based private investment firm, today announced the signing of a definitive agreement to sell its majority stake in Vitaquest, a leading maker of specialty nutritional products, to an affiliate of CK Life Sciences Int'l., Inc., a Hong Kong-based biotechnology company that is developing a range of broadly based life sciences products, particularly in the fields of human health and environmental sustainability. The transaction values Vitaquest a total enterprise value of $345 million.
Vitaquest is the leading custom contract manufacturer and multi-channel distributor of nutritional products in the U.S. The Company has a unique business model that leverages its product development, manufacturing and distribution capabilities to provide a complete solution for its customers. MidOcean led the recapitalization of Vitaquest in partnership with Keith Frankel, Vitaquest's Chairman and CEO, in March 2005.
CK Life Sciences is listed on the Growth Enterprise Market of the Stock Exchange of Hong Kong and is engaged in identifying needs and developing revolutionary biotechnology solutions for the improvement of human health and environmental sustainability. CK Life Sciences is a member of Cheung Kong Group whose member companies in Hong Kong alone command a market capitalization of approximately $95 billion.
Rob Sharp, Managing Director of MidOcean and a Director of Vitaquest, said, "Vitaquest has a wonderful business model and a leading market position in the growing nutraceutical market. During our partnership with Vitaquest's management team led by CEO Keith Frankel, Vitaquest was positioned to become a dominant global player in this space. We are proud of what Vitaquest has accomplished and believe that Vitaquest and its customers will benefit from its new and exciting partnership with CK Life Sciences and its affiliated companies."
H. L. Kam, CEO and President of CK Life Sciences, said, "Vitaquest is CK Life Sciences' first acquisition in the United States and represents an attractive platform for expansion. As the leader in the custom nutraceutical market, we believe Vitaquest is well positioned to continue its strong growth trajectory as the supplier of choice to third parties as well as to other companies within CK Life Sciences and the broader Cheung Kong Group."
"MidOcean was a great partner for Vitaquest as we continued to grow and diversify our business model," said Mr. Frankel of Vitaquest. "Our relationship with MidOcean was a great experience for me personally, as well as for the company. We look forward to our partnership with the team at CK Life Sciences and believe that we will benefit greatly from their vast resources and international presence."
About MidOcean Partners
MidOcean Partners is a premier private equity firm focused on the middle market. Based in New York and London, MidOcean is committed to investing in high-quality middle market companies with stable market positions and opportunities for growth. Targeted sectors include consumer and leisure, media and communications, business and financial services and non-cyclical industrial sectors.
Founded in 1977 and based in West Caldwell, NJ, Vitaquest International LLC is a leading value-added custom contract manufacturer and multi-channel distributor of specialty nutritional and nutraceutical products in the U.S. The Company has a unique business model that leverages its product development, manufacturing and distribution capabilities to provide a complete solution for its customers.