Company: Amerifit Brands
Sponsor: Charterhouse Group
Fund: Charterhouse Equity Partners V LP
Scheduled Launch: 2Q 2010
Placement Agent: TBD
When gearing up for a fundraise, it’s always nice to have a fresh exit on the books.
Such is the case with
The exit returns money to
Charterhouse Group plans to launch fundraising in the second quarter, according to a source familiar with the situation. No target has been set yet, since the firm first wants to get feedback from investors on an appropriate fund size.
The firm’s successful exit of Amerifit should help Charterhouse Group in its marketing. The firm purchased Amerifit in 2005 for $80 million, using a significant amount of equity, Partner David Hoffman said. Since then, the firm has invested additional capital for two add-on acquisitions. In 2005, the firm purchased the women’s health products division of Polymedica Corp. for $45 million, and in 2006, the firm purchased Culturelle from ConAgra Foods for less than $20 million, according to reports at the time. At that point, the company took on additional debt and brought in
Hoffman would not comment on the exact return generated from the sale of Amerifit, except to say, “It’s a very successful deal for us.” Under Charterhouse Group’s ownership, the company more than doubled its revenue even while de-emphasizing or discontinuing non-key brands over time, Hoffman added.
Charterhouse Group hired Deutsche Bank and U.K. advisory shop Nicholas Hall & Company to sell Amerifit last fall after receiving a handful of unsolicited approaches for the company. The firm ran a “limited process,” achieving a deal multiple of “above the market average,” Hoffman said. Amerifit’s new parent, Martek, which develops nutritional products, some of which are used in infant formula, trades at a price-to-earnings ratio of 16.94.