- Case Studies
Industry VerticalBusiness Services & Consumer
HeadquartersIrvine and Chatsworth, CA
Natural Products Group
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.
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.
- Market leader
- Attractive business model
- Arbonne consultant base generates sustainable revenues and profit growth
- Favorable industry dynamics
- Geographic expansion potential
- Introduced new products
- Developed infrastructure to sustain growth and profitability
- Upgraded business systems
- Broadened and Strengthened Management Team
- Completed three dividend recapitalizations in August 2005, January 2006, and June 2006 and exited in 2010