Industry Vertical
Business Services & Consumer
Irvine and Chatsworth, CA

Natural Products Group

  • Business

    Natural Products Group, LLC (“NPG”) was the parent of Arbonne International, LLC (“Arbonne”) and Levlad, LLC (“Levlad”). Arbonne was a leading direct marketer of personal care products including skin and anti-aging creams, bath and body washes and nutritional products. Arbonne marketed these products through a growing, multi-level marketing network of over one million independent consultants in North America, Australia and the United Kingdom. Levlad was a leading manufacturer and marketer of natural and organic personal care products for its branded products business, Nature’s Gate, and for a growing base of private label customers, including Arbonne.

  • Situation

    In 2002, Harvest targeted the healthy living and natural products industries as areas of focus and evaluated numerous opportunities. In mid-2003, NPG hired a boutique mergers and acquisitions firm to conduct a sale process. The sale process was a challenge because NPG was a family-owned business with sub-scale management, weak systems and controls and no obvious strategic buyer. In late 2003, through networking at a conference, Harvest learned of a consultant with specific insight into the company. Harvest differentiated itself by lining up key executives in advance of closing.

  • Harvest Partners Investment

    In November 2004, Harvest purchased NPG. To fund the acquisition Harvest arranged the debt financing, which included a senior credit facility and a mezzanine note. In addition, Harvest arranged equity co-investment capital for the transaction.

  • Investment Thesis

    • Market leader
    • Attractive business model
    • Arbonne consultant base generates sustainable revenues and profit growth
    • Favorable industry dynamics
    • Geographic expansion potential
  • Value Creation

    • Introduced new products
    • Developed infrastructure to sustain growth and profitability
    • Upgraded business systems
    • Broadened and Strengthened Management Team
  • Outcome

    • Completed three dividend recapitalizations in August 2005, January 2006, and June 2006 and exited in 2010