NEW YORK, Jan 04, 2006 (BUSINESS WIRE) -- Harvest Partners, Inc., a leading New York-based private equity investment firm specializing in management buyouts and growth financings of middle-market companies, announced today that it has completed a second recapitalization of Natural Products Group, LLC, issuing a $62.5 million dividend to shareholders. In total, Natural Products Group has issued approximately $200 million in dividends to its shareholders in 2005 on an original equity investment of approximately $93 million made in November 2004.
On August 16, Harvest completed an initial recapitalization of Natural Products Group, LLC. The August recapitalization included an option whereby the Company could, under certain conditions, borrow an additional amount of debt under the credit facilities to pay a dividend to shareholders within 18 months. NPG's performance continues to be solid, with EBITDA more than doubling in the past year, which provided support for the Company's new recapitalization.
Harvest formed Natural Products Group, LLC, a special purpose holding company, which completed the acquisition of Levlad, Inc. and Arbonne International, Inc., in November 2004. Arbonne is a leading, direct marketer of personal care products including skin and anti-aging creams, bath and body washes and nutritional products. Arbonne markets these products through its growing network of over 500,000 independent consultants in North America. Levlad is a leading manufacturer and marketer of natural and organic personal care products for its branded products business, Nature's Gate(R), and for a growing base of private label customers.
Ira D. Kleinman, Senior Managing Director of Harvest Partners, said, "The personal care products industry is a very large, growing market in which we have continued to see major shifts towards natural and organic products. Levlad and Arbonne have established themselves as leaders in their respective categories and continue to grow rapidly. The consumable nature of their products, highly cash-generative operations and excellent management teams make both companies attractive investments for Harvest. Arbonne, Nature's Gate and Levlad's contract manufacturing business have all grown at double-digit rates this year."
Michael B. DeFlorio, Harvest Managing Director, said, "We have been working closely with the NPG management team. Over the last twelve months we have helped recruit over ten senior managers, have helped develop plans for a new distribution facility, laid the groundwork for international operations and completed two financing transactions. We and management believe that NPG is poised for continued success in 2006."
About Harvest Partners
Founded in 1981, Harvest Partners is a leading New York-based private equity investment firm, pursuing management buyouts and growth financings of profitable, middle-market businesses. Harvest has over 20 years of experience investing in domestic as well as multinational companies. Currently, Harvest has over $1 billion of invested and committed capital under management from its limited partners. For more information on Harvest Partners, please visit the web site at www.harvpart.com.
About Natural Products Group
Natural Products Group, LLC is the holding company for Levlad, LLC, and Arbonne International, LLC. Levlad, headquartered in Chatsworth, California, is a leading manufacturer and marketer of branded natural and organic personal care products, under the brand names Nature's Gate(R) and Nature's Gate(R) Organics(R), which are sold through specialty retailers. Arbonne, based in Irvine, California, markets its own brand of herbal and botanical personal care products through a direct sales network of independent consultants in North America.