SOURCE: Wellspring Capital Management

January 16, 2007 10:48 ET

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