Wellspring Capital Management Completes Equity Investment in ChemAid Laboratories, Inc.
NEW YORK, NY -- (MARKET WIRE) -- January 16, 2007 -- ChemAid Laboratories, Inc. ("ChemAid"), a
leading contract manufacturer of specialty hair care, skin care and bath
and body treatment products, announced today that Wellspring Capital
Management ("Wellspring Capital"), a leading private equity firm, has
completed an equity recapitalization investment in the Company as part of a
strategic plan to accelerate the growth of ChemAid. This transaction will
provide ChemAid with a large capital base and management support for the
continued expansion of research and product development facilities and
production capacity. Terms of the transaction were not disclosed.
ChemAid has been a leading supplier of contract product formulation,
manufacturing and packaging services for specialty and prestige health and
beauty care product companies since 1971. This transaction will better
position ChemAid to build on its strong foundation as a leading contract
manufacturer for the health and beauty care industry, while remaining
committed to offering high quality formulated products and superior
customer service.
In connection with the recapitalization, Marc Reiner, who has been with
ChemAid for over 18 years, has been promoted to President of the Company.
Mr. Reiner has focused on transforming ChemAid into the premier high-end
contract manufacturer for the cosmetics industry.
With over 20 years in the health and beauty care industry, Daniel
Rachmanis, a seasoned and proven industry leader, has joined ChemAid
Laboratories as Chief Executive Officer. Mr. Rachmanis was most recently
President of Fine Fragrance for Firmenich (Americas). Previously, Mr.
Rachmanis was Chairman of Techpack (Alcan Group) handling all operations
for the Group in the Americas as well as worldwide Make-up activities.
Before that, he was President of SGD Glass (Saint Gobain) and responsible
for the North American and Latin American operations of SGD in the
pharmaceutical and cosmetic glass areas.
Roy Reiner, the Company's former President and Chief Executive Officer,
will remain with ChemAid in an active consulting capacity.
"ChemAid has strong customer relationships that result from a company-wide
commitment to the highest level of customer service and creativity in new
product formulation," said Joshua Cascade, a Principal of Wellspring
Capital. "We look forward to working with senior management to build upon
ChemAid's unique position as a leading contract manufacturer to the
cosmetic industry."
"We are very excited to partner with Wellspring Capital and Daniel
Rachmanis," said Marc Reiner, President of ChemAid Laboratories, Inc. "For
over thirty years, ChemAid has built a strong customer base and we are
optimistic about the prospects for the future. This partnership will be
invaluable to the execution of ChemAid's growth strategy and the Company's
effort to provide unparalled customer service."
"I am delighted to join the ChemAid team and to leverage my industry
experience to further strengthen ChemAid's well established position as a
leader in quality and service," said Daniel Rachmanis, Chief Executive
Officer of ChemAid. "Together with Wellspring Capital, we plan to expand
the Company's production and service capacity and strengthen the
infrastructure to better meet our customers' expanding needs."
About Wellspring Capital Management
Wellspring Capital Management LLC is a New York-based private equity firm
that manages more than $2.0 billion in equity capital. The firm is focused
on acquiring companies where it can realize substantial value by
contributing management expertise, innovative operating and financing
strategies and capital. For additional information, please visit
www.wellspringcapital.com.
Contact Information: Contact:
ChemAid Laboratories
Lisa Lori
Lisa Lori Communications
212-925-2300
Wellspring Capital
Melissa Daly or Elisa Marks
Brunswick Group
212-333-3810