North Castle Partners and Golden Gate Capital Complete Recapitalization of Leiner Health Products

GREENWICH, Conn., May 27, 2004 -- North Castle Partners, a private equity firm based in Greenwich, Connecticut and Golden Gate Capital, a San Francisco-based private equity firm, today announced that the recapitalization of Leiner Health Products has been completed. The $650 million recapitalization involved a sale of North Castle's existing majority stake in the company. Leiner is a market leading store brand manufacturer of vitamins, nutritional supplements and over the counter drugs.

As part of the recapitalization, Golden Gate and a new fund investment vehicle managed by North Castle invested approximately $265 million and are now co-sponsors of Leiner. Leiner's management team retains a significant ownership in the company. As part of the transaction, UBS Securities, Credit Suisse First Boston and Morgan Stanley provided a $240 million senior credit facility and underwrote a $150 million debt offering.

About North Castle Partners

North Castle Partners, LLC (, is the leading private equity firm focused exclusively on the Healthy Living & Aging marketplace. To date, it has invested more than $800 million of equity in over 40 companies that have been consolidated into ten industry-leading platforms: fitness clubs; active lifestyle nutrition; healthy beverages; day spas; complementary and alternative medicine; vitamins, minerals and supplements; natural personal care; adventure and luxury travel; and behavioral health services; and cosmeceuticals.

About Golden Gate Capital

Golden Gate Capital ( is a San Francisco-based private equity investment firm with approximately $2.5 billion of capital under management. Golden Gate Capital is dedicated to partnering with world-class management teams to invest in change-intensive, growth businesses. They target investments where there is a demonstrable opportunity to significantly enhance a company's value. The principals of Golden Gate have a long and successful history of investing with management partners across a wide range of industries and transaction types.

About Leiner Health Products

Founded in 1973, Leiner Health Products, headquartered in Carson, Calif., is America's largest store brand manufacturer of vitamins, minerals, supplements and diet aids. The company also is a leading producer of store brand over the counter (OTC) drugs. Selling products exclusively to its retailers, Leiner provides nearly 40 food, drug, club and mass merchants with over 3,000 products to create extraordinary store brands at bargain prices. It also is the largest supplier of vitamins, minerals and supplements to the U.S. military. Leiner markets its own brand of vitamins under YourLife(R) and sells over the counter drugs under the Pharmacist's Formula(R) name. Last year, Leiner produced 27 billion doses offering consumers affordable choices to improve their health and wellness. Headquartered in Carson, California, Leiner Health Products has expanded to export all over the world.

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.