MIAMI, FL (NOVEMBER 2, 2006) – Trivest Partners, L.P. today announced the sale of Herbal Magic ULC (“Herbal Magic” or the “Company”) to TorQuest Partners, a leading Canadian-based manager of private equity funds. Herbal was one of two franchisors in Trivest’s current portfolio and is Canada’s largest chain of weight loss centers with over 330 centers across North America.
Trivest acquired Herbal in December 2003 from the Company’s founder, Dieter Decker, with funds from Trivest Fund III, a $316.5 million private investment fund. During its ownership period, Trivest bolstered the management team, provided management stock ownership, supported the Company’s strategy to re-brand its products and its centers and developed a successful national cooperative advertising campaign.
Peter “Chip” Vandenberg, Jr., Trivest Partner said, “Herbal Magic was an outstanding investment for Trivest and its co-investors. Herbal Magic’s management team, which partnered with Trivest in the investment, performed well above expectations. The Company’s program and products were enthusiastically received in the marketplace and we exceeded our five-year financial projections in under three years. We have a great deal of respect for the new owners, TorQuest Partners, and believe they will benefit from Herbal Magic’s continued growth throughout North America.”
Tom McNeely, Herbal Magic’s Chief Executive Officer stated, “Trivest has a long history of investing in powerful consumer businesses. With respect to our Company, Trivest provided the guidance and support necessary to accelerate our growth. Trivest went above and beyond what I expected from a financial partner. In addition to assistance in finance, legal and systems, they helped drive new sourcing initiatives and assisted in development of the strategies used to deliver double digit same store sales growth throughout our centers. At the time of Trivest’s original acquisition, we had only 228 centers and today we cover all of Canada, including Quebec, with over 330 locations.”
CIBC World Markets Corp. acted as financial advisor and Blake, Cassels & Graydon LLP acted as legal advisor to Trivest.
Trivest Partners, L.P., a private investment firm, is a leading provider of equity for middle market corporate acquisitions, recapitalizations and growth capital financings. Since its founding in 1981, Trivest has sponsored more than 130 acquisitions and recapitalizations, totaling nearly $3.0 billion in value. For more information, please visit www.trivest.com.
