Red Diamond Capital Acquires Nutritional Laboratories International, Inc. in Partnership with Management
NEW YORK (March 07, 2005) – Red Diamond Capital, a private equity firm based in New York, announced today its recent acquisition of Nutritional Laboratories International, Inc. ("NLI"), a leading manufacturer of custom formulations for the nutritional supplement industry, based in Missoula, Montana. Food industry veteran Ronald H. Danenberg and NLI management, led by Terry Benishek, president of NLI, participated alongside Red Diamond in the acquisition and will play key roles in the future management of the company.
NLI's management team, led by Benishek, will continue to manage NLI and build on the Company's record of success. Danenberg, a partner in Red Diamond's CEOwners® Program and former chief executive officer of Northfield Foods, Inc. and Richter Brothers, Inc., has been named chief executive officer of Nutritional Holdings, Inc., the parent company of NLI, to facilitate strategic development through acquisitions and other growth initiatives.
Nutritional Laboratories International, Inc. is one of North America's leading manufacturers of quality nutritional supplements. The Company develops, manufactures and packages custom vitamin and mineral formulations, botanical products and weight loss and other functional formula supplements for recognized branded product marketing companies. NLI is known for its sophisticated manufacturing procedures supported by advanced in-house laboratory services and an intense focus on quality assurance and customer service. The Company was established in 1997 by its management and The Northern Rockies Venture Fund. For more information, visit www.nutritionallabs.com
"We are very excited to partner with Ron Danenberg, Terry Benishek and the management team of Nutritional Laboratories in the acquisition of NLI," noted Bret E. Russell, managing director and CEO of Red Diamond. "The dietary supplement industry has and will continue to experience sustained growth and Nutritional Laboratories is one of the few high quality contract manufacturers serving the sector. We anticipate continuing to build the Company through internal growth and strategic acquisitions, and by taking advantage of collaborative opportunities with our affiliate, Mitsubishi Corporation."
NLI represents Red Diamond's fourth platform acquisition since inception. Other portfolio companies include Hammerhead Distribution, Inc., a distributor of roofing and building products, Hi-Tech Rubber, Inc., a custom molder of precision elastomeric medical components, and Allied Extruders, Inc., a manufacturer of polyethylene film for packaging applications.
About Red Diamond Capital
Formed in 2002, Red Diamond Capital is an independent $150 million private equity fund that invests in middle-market manufacturing, service and distribution businesses in North America. With its committed capital provided primarily by Mitsubishi International Corporation, the US subsidiary of Japan's leading trading company, Red Diamond offers a unique mix of strategic resources, industry-focused capital and management expertise to fuel the growth of its portfolio companies.
Through its CEOwners® Program, Red Diamond creates partnerships with experienced CEOs who have proven leadership capabilities and an entrepreneurial desire to achieve a meaningful ownership stake in the businesses they operate. As part of the program, Red Diamond works to acquire businesses that fit the skills and experience of each CEOwners® Program executive.
