August 17, 2022
Swander Pace Capital Announces First Continuation Fund with Captek Softgel International. Inc. in Partnership with Morgan Stanley and Rabo Investments
San Francisco, CA and Bedminster, NJ (August 17, 2022) – Swander Pace Capital (“SPC”), a leading private equity firm specializing in consumer product companies, announced the closing of a continuation fund transaction with Captek Softgel International, a leading Vitamin, Mineral & Supplement (“VMS”) soft gel manufacturer in North America. The new continuation fund acquired Captek from Swander Pace Capital Fund V and Swander Pace Capital Fund VI. Each investor from SPC Fund V and VI had the opportunity to roll over their equity stake and continue to participate as an investor. Morgan Stanley was the lead investor in the continuation fund and is joined by Rabo Investments, the investment arm of Rabobank, as well as Swander Pace reinvesting LPs and GPs. The new Fund includes substantial capital investment to drive organic growth initiatives and strategic acquisitions for Captek going forward.
Swander Pace Capital acquired Captek in December of 2015 and later added onto this initial investment with the acquisition of J&D Labs in July of 2017. The combined assets and capabilities have created a differentiated, scale contract manufacturing business with expertise in providing custom VMS products to its well diversified customer base.
“We are excited to continue to partner with Swander Pace Capital on this next phase of growth,” said Randy Bridges, CEO of Captek. “Our focus on operational excellence, innovation, and new acquisition potential makes this a very exciting time for Captek, and our team is ready for this next chapter.”
“Captek is a highly differentiated and strategically important asset. Since starting this investment in 2015, we have been able to drive considerable value for our investors with the strong leadership and great execution of our team members. The performance has been impressive to-date, but we believe we have a strong financial and strategic outlook ahead, and that is why we have chosen to create a new vehicle to participate in the next stage of growth at Captek,” explained Corby Reese, Managing Director at Swander Pace Capital.
“We are excited to collaborate with Swander Pace Capital and the talented management team at Captek to help support the continued growth of this unique manufacturing platform in the health and wellness space in the US. SPC’s leadership in the consumer space coupled with this strong asset made this a compelling continuation vehicle transaction, and we look forward to SPC’s continued success with Captek.” explained Yash Gupta, Partner at Morgan Stanley Private Markets Secondaries, an investment team within Morgan Stanley Investment Management that is a leader in GP-led continuation vehicle transactions.
“Captek further exemplifies our depth and experience investing in the Health and Wellness sector, including businesses such as Renew Life, Swanson Health Products, Clarion Brands, and Reliance. Captek enjoys a unique and innovative position in the marketplace, and we look forward to partnering with the team to execute our playbook to drive growth,” said Alex Litt, Senior Vice President at Swander Pace Capital.
Going forward, SPC will continue to seek acquisition opportunities for Captek in the Vitamins, Mineral and Supplements category to leverage the firm’s experience and expertise in the space.
Swander Pace Capital was supported in this secondary transaction by Lazard (secondary transaction advice), Kirkland & Ellis LLP and Gibson, Dunn & Crutcher LLP (legal advice) Armanino LLP and CohnReznick (finance), and Kroll LLC (fairness opinion). The new investors were supported by Davis Polk & Wardwell LLP (legal advice).
About Captek Softgel International, Inc.
Captek Softgel International, Inc. (CSI) is a privately-owned, FDA registered and audited, GMP-certified, full-service contract manufacturer of custom dietary supplement formulations. CSI features high efficiency encapsulation lines operating 24/5, capable of producing more than 10 billion soft gels annually. The facility encompasses approximately 295,000 square feet of production, analytical laboratory, pilot laboratory, and warehousing space. Captek fully complies with FDA cGMP’s and has been independently certified by NSF International. For more information, visit www.capteksoftgel.com.
About Swander Pace Capital
Swander Pace Capital (“SPC”) is a private equity firm that invests in companies that are integral to consumers’ lives. Representative present and historical investments include Mommy’s Bliss, Renew Life, Bragg Live Food Products, Swanson Health Products, Clarion Brands, Aden & Anais/HALO, Merrick Pet Care, Kicking Horse Coffee, Fleischmann’s Vinegar, Patriot Pickle, and other leading companies. The firm partners with management teams to help build companies to their full potential. With offices in California, New Jersey, and Ontario (Canada), SPC has invested in more than 55 companies and raised cumulative equity commitments of approximately $1.8 billion since 1996. For more information, visit www.spcap.com.