- Why it this important: The Corganics deal marks the second company added to Altacrest’s portfolio
Independent Sponsor Altacrest Capital is continuing its foray into the consumer products sector with its latest acquisition: Nature-based personal care brand Corganics.
“We are very excited to bring another high-quality consumer brand into the Altacrest portfolio,” Tim Laczkowski, founder of Altacrest Capital, said in a press release Tuesday. “Our job is to leverage this enthusiasm for the product and get it into the hands of consumers much more broadly.”
Corganics, founded by CEO Gene Thrash in 2003, makes over-the-counter topical analgesic cream called Relief, which is used by oncologists, podiatrists, chiropractors, massage therapists and athletes, according to the press release.
Corganics is Altacrest’s second acquisition. Last year, the Dallas-based independent sponsor acquired watch strap company Barton Watch Brands for an undisclosed amount.
Founded in 2017, Altacrest acquires companies with a minimum Ebitda of $2 million, its website shows. It focuses on business-to-business services and consumer products, particularly with a focus in e-commerce.
Altacrest plans to primarily use Amazon to help increase online sales for Corganics, before shifting focus to promote website sales, Laczkowski told Buyouts, adding that “it fits the investment thesis we developed for consumer brands.”
Thrash did not respond to Buyouts request for comment. He “will retain a significant equity stake in the business and will also play a critical role in new product development,” according to the press release.
Laczkowki said that Altacrest Capital has been speaking to Thrash since 2018 “to structure an amicable deal.”
Laczkowski worked at Prudential Capital Group for 15 years. In 2018, he brought on former JP Morgan Securities executive Rick Sukkar and Brien Davis, who worked with him at Prudential Capital for 14 years. All three serve as partners in the firm.
“Our strategy is to take companies with strong free cash flow [and are] asset light and help build those businesses for long-term growth,” Laczkowski told Buyouts in June.