SAN FRANCISCO, CA, and NEW YORK, NY, May 21, 2007 – TSG Consumer Partners LLC (“TSG”), the leading private equity investment firm in branded consumer products companies, announced today the closing of the previously announced sale of GFA Brands, Inc., to Boulder Specialty Brands, Inc. (“Boulder”) (OTCBB:BDSBU) (OTCBB:BDSB) (OTCBB:BDSBW).
GFA Brands, in which TSG had a substantial equity interest, is the marketer of Smart Balance® and Earth Balance® brand heart-healthy and trans-fat-free food products. The purchase price, as previously announced, was approximately $465 million in cash.
Smart Balance® was launched in 1996 by Robert Harris, who previously owned Nutrition Industries Corporation, a licensee of Weight Watchers sold in 1988 to H.J. Heinz. The Smart Balance product line includes margarine, popcorn, mayonnaise, peanut butter and cooking oils. GFA also markets natural and organic foods under the Earth Balance® brand. TSG Consumer Partners acquired a stake in the company in 2004.
“I have enjoyed working with the people at TSG and found it highly productive,” said Bob Harris. “They have consistently been a strong resource for our company and management.”
“We value our partnership with the Harris family,” said Alexander S. Panos, a Managing Director of TSG. “Smart Balance has developed a loyal following among consumers and continues to have growth potential. Smart Balance represents another case study of brand-building, as do the other investments we have recently sold -- VitaminWater (sold to Tata Group) and PureOlogy (sold to L’Oréal).”
Boulder is a company formed in 2005 specifically to make an acquisition in the healthy food category and plans to change its name to Smart Balance, Inc., following the transaction.
About TSG Consumer
Partners
TSG Consumer Partners pioneered the use of private equity in high-growth, middle market branded consumer companies, and has maintained this focus since inception, with nearly a 20-year track record. The fund has generated top quartile returns on all realized branded consumer investments over four funds, and has developed a team of professionals with an unmatched breadth and depth of expertise that works closely with managements to build leading companies and strong brands. With approximately $1.5 billion in capital under management, TSG has invested in such brands as Terra Chips, Glaceau VitaminWater, NV Perricone, Smashbox Cosmetics, PureOlogy, Smart Balance, Meguiar's, Famous Amos, MET-Rx and Mauna Loa Macadamia Nuts.
