Press release, July 19, 2006
Vi-Jon Laboratories and Cumberland Swan Join Forces with Berkshire Partners
ST. LOUIS, July 19, 2006 - St. Louis-based Vi-Jon Laboratories Inc. and Smyrna, Tenn.-based Cumberland Swan Holdings Inc. today announced that both companies have entered into an agreement to be purchased by Berkshire Partners LLC, a Boston-based private equity firm. The two companies will operate as one company. Terms of the agreement were not disclosed.
Vi-Jon and Cumberland are leading manufacturers of private label personal care products in the United States. Combined, the companies produce more than 250 different formulations and more than 7,000 products across a wide spectrum of categories including oral care, soaps, first aid products, baby care and hair care for the health, beauty and personal care market. Vi-Jon and Cumberland supply store-brand product to major mass merchandisers, supermarkets, drug stores, and club and dollar stores in North America. Key customers include Wal-Mart, Walgreens, Target, Albertsons, CVS, Kroger, Dollar General and Safeway. In addition to manufacturing private label products, Vi-Jon and Cumberland have developed contract manufacturing and branded products businesses, including Vi-Jon's Germ-X line of hand sanitizers.
John G. Brunner is the third generation of the Brunner family to lead Vi-Jon and will continue to serve as chairman and CEO. Kirk L. Sanders will continue in his position as president and chief operating officer. The new entity will remain headquartered in St. Louis, with manufacturing and distribution facilities continuing in both St. Louis and in Smyrna.
"Vi-Jon and Cumberland each have best-in-class research and development capabilities and manufacturing facilities, and enjoy long-standing relationships with key retailers in all major channels," stated Randy Peeler, managing director at Berkshire Partners. "We are eager to partner with John Brunner and his exceptional management team to establish the leading private label product supplier for the industry."
Combined, Vi-Jon and Cumberland have more than 200 years of successful manufacturing history," said Brunner. "Our product lines complement each other very nicely, and we share a similar focus of providing high-quality private label products to our customers. Together, I believe we can broaden our categories further and, at the same time, meet and exceed growing customer and consumer demands for our high quality private label products. "As a new, larger entity we will have the resources to compete more effectively in the marketplace," said Brunner. "With our combined technology, broader distribution, expanded product line, and our experienced American workforce, we can achieve greater efficiencies and serve our customers even better."
The combined company will have significant presence in the private label industry," added Sanders. "I have great confidence in the abilities of our combined seasoned management team to execute a smooth transition because of the strong relationships we have built with our customers and vendor partners. Together with our wonderful associates at both Cumberland Swan and Vi-Jon, we're going to forge the strengths of both companies into one." Berkshire Partners' recent investments in the consumer products and retailing sectors include Acosta, Inc., Bare Escentuals, Inc., Party City, Inc., and Carter's, Inc. Edgeview Partners represented Cumberland and Vi-Jon in the transaction. Bank of America will provide the debt financing.
About Vi-Jon Laboratories
Founded in St. Louis in 1908 as the Peroxide Specialty Company by John Burgess Brunner, John G. Brunner's grandfather, the company later moved to Cincinnati, Ohio, and returned to St. Louis in 1912. In 1933, the company's name changed to Vi-Jon Laboratories, combining the names of Brunner's grandfather and grandmother, Viola "Vi" Brunner, and sold a popular line of cosmetic products. Today, Vi-Jon manufactures oral care, skin care, baby care and nail care products, men's toiletries, and antibacterial hand sanitizer and soaps for the nation's top retailers. Vi-Jon also manufactures Germ-X hand sanitizer and foaming hand soap. For information on Vi-Jon and its products, visit www.vijon.com.
About Cumberland Swan
Cumberland Manufacturing Company was founded in 1898 in Chattanooga, Tenn., as a spice and extract manufacturer. The company later moved to Nashville and eventually moved all operations to Smyrna in 1981. Today, Cumberland Swan manufactures oral care, baby care, hair care, skin care, sun care, bath care products, laxatives and first aid products. Many of its products are sold under the familiar Swan brand, while others are manufactured under retailer house brand names.