Marwit Capital Partners II, L.P. Announces Completion of Third Portfolio Investment
Newport Beach, CA – Marwit Capital Partners II, L.P. (“MCP II”) announced today that it has completed its third portfolio company investment. The Fund invested $9 million in Driftwood Dairy, Inc. based in El Monte, California. To date, the Fund has invested $18.5 million of capital with reserves of an additional $20 million for add-on acquisitions.
Driftwood, which was acquired in 1946 by the Dolan Family, is currently owned by second and third generation members of the family. “Driftwood was seeking an investment partner that would allow the family to effect a generational transition, as well as preserve the family’s legacy” said Chris Britt, Managing Partner. “In doing so, we are pleased to announce that we have teamed up with two Operating Partners, P. Kelly Olds and Bill Steiner, who have extensive experience in the dairy industry.” They, along with four members of the Dolan family and the CFO, will serve in executive management positions with the company. As of the closing, MCP II will own 68% of the company on a fully-diluted basis.
Driftwood Dairy is one of the largest independent dairy processors in California and the Western U.S. The company processes and packages a wide assortment of milk and juice and distributes a full line of dairy products to a diverse customer base including schools, restaurants, convenience stores, food manufacturers, hospitals and other health care facilities, institutions, foodservice distributors and other dairy processors. “Driftwood’s focus on healthy beverages and school nutrition makes it an ideal fit with MCP II’s “healthy living” investment theme” added Matthew Witte, Managing Partner.
The transaction was sourced directly by MCP II through its CEO Partnering program and bank referral network. To support the growth plan for the company, Marwit has partnered with Merrill Lynch Capital for senior debt and The Lincoln National Life Insurance Company for mezzanine and equity capital.
About Marwit Capital
MCP II invests in lower middle market “micro cap” businesses that are leaders in niche markets, have revenues of $10 to $100 million, EBITDA of $2 to $10 million, and enterprise values generally less than $50 million. In all instances, Marwit partners with experienced CEO Partners and management teams that invest alongside the Fund, and actively collaborates with them to create value. The Fund focuses on lifestyle and other entrepreneurships, family businesses, corporate orphans, or businesses that can otherwise serve as platforms for growth. The targeted size of MCP II is $175 million.
Marwit completed its second close in June 2006 bringing total assets to $90 million. A third close is scheduled for September 30, 2006 with a final close expected at the end of Q4 2006. Investors include the Banc of America California Community Venture Fund, LLC ("BACCVF") and the CalSTRS/Banc of America Capital Access Fund, LLC ("CBACAF"). BACCVF and CBACAF are fund of fund vehicles managed by Banc of America Capital Access Funds on behalf the California Public Employees' Retirement System (CalPERS), the California State Teachers' Retirement System (CalSTRS), and Bank of America. Other investors included the Meadows Foundation, The Lincoln National Life Insurance Company, Hawn Foundation, Poetic License Partners L.P., and Granville Private Equity Partners, L.P.