The Deal: Debtholders gain control of Neways Enterprises

Date: 20-Jan-2012

Golden Gate Capital has given majority control of portfolio company Neways Enterprises, a Springville, Utah, supplier of dietary supplements and personal care products, to debtholders Z Capital Partners LLC of Chicago and affiliates of Stamford, Conn.-based SAC Capital Advisors LP in an out-of-court restructuring, the company said Thursday, Jan. 19. The restructuring allowed Neways to significantly reduce its debt, it said. Golden Gate retains an equity stake in Neways, which distributes more than 200 nutritional and personal care products. Neways will continue to be led by CEO Scott St. Clair. San Francisco's Golden Gate purchased Neways from company founders Leslie DeeAnn Mower and Tom Mower in 2006 for an undisclosed price. At the time, Golden Gate financed the transaction with equity from its $2 billion second fund and senior financing arranged by New York-based Jefferies & Co. The company, founded in 1992, has not disclosed financial information. In November, Neways announced that it was in discussions with lenders to refinance the company's capital structure. Representatives of Z Capital and SAC Capital will join the board. Z Capital declined to comment. Neways was advised by a Kirkland & Ellis LLP team that included partners Richard Cieri, Joshua Sussberg, Steve Oetgen, Jeremy Veit and Yongjin Im. Peter J. Solomon Co. was its financial adviser. — Vyvyan Tenorio

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