| 1/7/2002 |
MERRIMAC, MASSACHUSETTS, JANUARY 7, 2002 - Wolverine Proctor & Schwartz and Parthenon Capital are pleased to announce the successful completion of a major financing for the company. Wolverine Proctor & Schwartz is a leading global supplier of ovens, dryers, shredding lines, flaking mills and other processing equipment serving the food, chemical, textile, tobacco, and other industries. Founded in1930, the company has global manufacturing capabilities in Massachusetts, North Carolina, and the United Kingdom and serves a blue-chip customer base of Fortune 1000 clients. “Following the retirement of our debt and infusion of working capital from Parthenon Capital, a billion dollar equity investor based in Boston, our company is well positioned for growth in 2002 and beyond” said Mr. Deepak Kulkarni, Chairman of Wolverine Proctor. “Consolidation trends in the full range of industries in which we compete demand continued innovation, quality products and customization at reasonable cost,” Mr. Kulkarni added. “With access to the quality of the people and amount of financing made available to us by Parthenon Capital, we intend to resume and consolidate our preeminent position as the premium quality provider of solutions to the food and several other industries in which we participate,” Mr. Kulkarni said.
In addition to focusing on companies which have the capability to generate internal growth, Parthenon Capital frequently funds add-on acquisitions which provide strategic and operating synergies. Mr. Kulkarni said, “Our ability to attract and retain the best and the brightest in the industry will be greatly enhanced as we partner with Parthenon Capital to consolidate and innovate in our own business to move with the changes in our customers’ businesses.” Added Mr. Kulkarni, “We believe we already have the highest market share in the segments we serve, the best reputation for quality, the most number of engineers, the largest installed base of machines and a robust ability to deliver parts and service to maintain these machines. Following the introduction of Parthenon Capital’s equity working capital financing, our company will be well positioned to to resume the strong pace of innovation that has remained a hallmark of our company over the past decade.”
Ernest K. Jacquet, Managing Partner of Parthenon Capital, commented, “Wolverine Proctor has an established brand name and an excellent reputation for high quality products. We believe that with the financial and strategic resources of Parthenon Capital, that Wolverine Proctor has the potential for significant growth over the next decade, growth that has been hindered by the company’s limited financial resources.” Erik A. Scott, a Principal of Parthenon Capital, added, “We are working with management to capitalize on Wolverine’s preeminent position in many of its markets. By solving the company’s working capital needs, adding talented management, and improving R&D and sales & marketing functions, we plan to expand the company significantly.”
About Wolverine Proctor & Schwartz
Founded in 1930, the company originally manufactured drying equipment for the pulp and paper industry. In the early 1940’s, the company developed and patented a jet-tube air-handling system, which used a technology in which air passed through jet tubes to dry products uniformly. During the late 1950’s, Wolverine introduced the fluidized bed technology to manufacture Kellogg’s rice crispies. With the fluidized bed technology and rapid heat transfer system, Wolverine was able to expand rice, so that the exterior was exposed to quick heating while moisture was retained inside. Today, the Jetzone™ conveyor oven has become the standard in the cereal industry and the same technology has been applied to numerous food products as well as to other industries. Wolverine acquired Proctor & Schwartz, a leading UK manufacturer of thru-bed drying equipment, in 1994. Today, Wolverine Proctor & Schwartz serves a variety of industries including cereal, vegetable and snack food segments of the food industry, as well as paper, tobacco, textiles and chemicals.
About Parthenon Capital
Parthenon Capital is a private equity firm focused on providing capital and strategic resources to middle-market companies. The firm works in partnership with owners and managers and builds value by providing growth capital plus strategic and operating expertise to enable the company to reach its ”Full Potential™”.
Parthenon Capital closed its second round of funding at $750 million, making the total capital under management in excess of $1.1 billion. With headquarters in Boston, Massachusetts, and a west coast office in San Francisco, California, the professionals at Parthenon Capital have a proven track record of over 30 years experience building value in middle-market companies. Parthenon Capital’s areas of expertise include Business and Financial Services, Healthcare, Transaction Processing, Information/Publishing, Distribution, Consumer Products and Niche Manufacturing Industries
For further information, please contact:
Wolverine Proctor & Schwartz
Paul Smith
Horsham, Pennsylvania
215 443 5200
Terry Midden
727 789 2870
Iain Gillies
(44) 141 616 0611
Glascow, Scotland, UK
Parthenon Capital
Ernest K. Jacquet or Erik A. Scott
200 State Street
Boston, MA 02109
(617) 478-7000
www.parthenoncapital.com |
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