December 17, 2004 By Giada Cardoletti Dow Jones LBO Wire 12/17/2004 Hilo, Hawaii - West Coast-based private equity firm TSG Consumer Partners closed its second exit of the year Thursday, helping to generate combined returns of $370 million from the two investments of $55 million. "It's going to be a nice holiday," said Charles "Chuck" Esserman, a co-founding partner of the firm. The buyout shop on Thursday closed the previously announced sale of Mauna Loa Macadamia Nut Corp., to snack foods giant Hershey Foods Corp. for $130 million. The San Francisco private equity shop bought Mauna Loa in 2000 from C. Brewer & Co. for $30 million. The deal follows the company's exit from Medtech Holdings Inc. in February. TSG had bought Irvington, N.Y.-based Medtech, the maker of Compound W, Spic and Span and Murine, in 1997 for about $25 million and sold it to GTCR Golder Rauner this year for more than $225 million, after "significantly growing the business," Esserman said. He would not disclose the company's revenue. Based in Hilo, Hawaii, Mauna Loa is the country's largest buyer and processor of macadamia nuts. The business was operating at a loss at the time of the acquisition, with about $50 million in net sales, and focusing most of its distribution on Asia and avoiding the Americas, said Esserman. Bringing distribution to the U.S. and Latin America helped shift the company's financial trajectory; it started to deliver 30% compound annual sales growth in 2002. In 2004 the company had $80 million in annual revenue, he said. Founded in 1987 by J. Gary Shansby and Esserman, TSG Consumer Partners has over $800 million in capital under management. To date the firm has invested in over 40 consumer brands and seen an average of 60% returns for its investments in these companies during the last 18 years, Esserman said. Recent investments include such brands as Harry's Fresh Foods, a maker of refrigerated foods, and Don Miguel Mexican Foods Inc. a maker of Mexican food products. Reach TSG at 415-217-2300. Copyright © 2004 Dow Jones & Co. LBO Wire Copyright © 2008 TSG Consumer Partners. All Rights Reserved.