Lang Holdings Completes 363 Bankruptcy Sale to an Affiliate of Sun Capital Partners and Catterton Partners
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BOCA RATON, Fla.--(BUSINESS WIRE)-- Sun Capital Partners, Inc. ("Sun Capital"), a leading private investment firm specializing in leveraged buyouts and investments in market-leading companies, today announced that one of its affiliates has acquired a controlling interest in Lang Holdings, Inc. ("Lang"), a leading supplier of art, design and sports driven calendars, back-to-school ("BTS") products, greeting cards and stationary. Catterton Partners, Inc. ("Catterton"), a leading private equity firm focused on providing equity capital to growing middle market companies and an investor in Lang since 2003, retained a 40% ownership in the acquiring affiliate.
The parent company of Lang filed for voluntary protection under Chapter 11 of the Bankruptcy Code on July 16, 2009 in the U.S. Bankruptcy Court for the District of Delaware ("Bankruptcy Court"), due to liquidity constraints primarily caused by a severe contraction in retail volumes of art, calendars, and stationary supplies. To facilitate the restructuring process and allow for a sale of the ongoing business, an affiliate of Sun Capital agreed to provide a debtor-in-possession loan facility ("DIP") of up to $16 million to Lang upon the bankruptcy filing. The DIP financing allowed Lang to continue to restructure its liabilities as it proceeded with the sale process. An affiliate of Sun Capital and Catterton ("LHI Enterprises, Inc.") served as the stalking horse bidder under Section 363 of the U.S. Bankruptcy Code. The Bankruptcy Court approved LHI Enterprises' bid and the sale closed on October 13, 2009. The business will continue to operate under the Lang, Turner and Avalanche brand names.
"With Sun Capital's DIP financing and its subsequent success in the auction, we were able to successfully emerge from reorganization under Chapter 11, while maintaining normal operations in all of our facilities; save jobs which would have been otherwise lost; and continue to supply our customers without interruption," said Laurie Gilner, President and Chief Executive Officer, Lang Holdings, Inc. "Lang is now a leaner, more focused organization, and is competitively positioned to broaden its reach into the retail channel."
Anthony G. Polazzi, Principal, Sun Capital Partners, Inc. added, "We are pleased to join forces with Catterton Partners and to provide the Company the resources needed to invest in the business and pursue the numerous growth opportunities that exist in the current marketplace. We look forward to working with Lang's management team in growing its business both organically and through add-on acquisitions."
About Lang Holdings, Inc.
Lang Holdings is a leading supplier of art, design and sports driven calendars (second largest participant in the U.S. calendar industry), BTS products, greeting cards and stationary. Products are marketed under three widely-recognized Company-owned brands: Lang(R), Avalanche(R), and Turner Licensing(TM) brands. Its products are sold in gift, specialty, mass merchandiser markets, and the Lang company website.
About Sun Capital Partners, Inc.
Sun Capital Partners, Inc. is a leading private investment firm focused on leveraged buyouts, equity, debt, and other investments in market-leading companies that can benefit from its in-house operating professionals and experience. Sun Capital affiliates have invested in and managed more than 200 companies worldwide since Sun Capital's inception in 1995 with combined sales in excess of $40 billion. Sun Capital has offices in Boca Raton, Los Angeles and New York, and affiliates with offices in London, Paris, Frankfort, and Shenzhen and Shanghai, China. Sun Capital has been one of the most active private investment firms in the U.S., closing 169 transactions from 2002 through 2009, and was the recipient of the M&A Advisor Private Equity Firm of 2008 award.
About Catterton Partners
With more than $2.3 billion under management, Catterton Partners is a leading private equity firm in the United States focused exclusively on the consumer industry. Since its founding in 1990, Catterton has leveraged its investment capital, strategic and operating skills, and network of industry contacts to establish one of the strongest investment track records in the consumer industry. Catterton invests in all major consumer segments, including Food and Beverage, Retail and Restaurants, Consumer Products and Services, and Media and Marketing Services. Catterton has led investments in companies such as Breyers Yogurt, Nature's Variety Pet Food, Liberty Safe Company, Build-A-Bear Workshop, Cheddar's Restaurants, P.F. Chang's China Bistro, Baja Fresh Mexican Grill, Frederic Fekkai, Wellness Pet Food, Kettle Foods, Odwalla and Heartland Recreational Vehicles. More information about the firm can be found at http://www.cpequity.com.
Source: Sun Capital Partners, Inc.
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