Affiliate of Sun Capital acquires CornerStone

Apr 10 2012

Sun Capital Partners, Inc. ("Sun Capital"), a leading private investment firm specializing in leveraged buyouts and investments in market-leading companies, today announced that an affiliate has acquired CornerStone Research & Development, Inc. ("CornerStone" or the "Company"), a leading global contract manufacturer of top-branded vitamins and dietary supplements, from Mitsui & Co. (U.S.A.), Inc.

CornerStone is a leading "pure-play" nutritional supplement manufacturer in the U.S. and develops, produces, and packages more than 500 different capsule, tablet, and specialty powder products for its customers. These include vitamin and mineral supplements, botanicals, energy and weight management supplements, probiotics, and anti-aging/general wellness supplements that are sold through leading national and international nutritional product marketers and retailers. The Company can manage the entire formulation, design, and product sourcing process for its customers. Its packaging capabilities include bottles, capsules, tablets, blister cards, pillow-packs, and bulk packaging.

Headquartered in Ogden, UT, CornerStone operates a state-of-the-art 190,000 square foot automated manufacturing facility that is capable of producing over five billion tablets and capsules annually, making it one of the largest in the industry. The facility's scale, robust product and R&D capabilities, and pharmaceutical grade quality control serve as a significant differentiator and competitive advantage. CornerStone recently began focusing on materially improving its operational performance and plans to continue building on this success by streamlining the organization, increasing manufacturing automation, and pursuing a number of growth initiatives, including adding new product capabilities and expanding distribution channels. Sun Capital has prior experience in the nutraceutical industry with former affiliated portfolio company Elan Nutrition, a formulator and manufacturer of snack and nutrition bars, which nearly doubled revenue and improved EBITDA from a loss to solid, positive double-digit performance during its ownership by an affiliate of Sun Capital Partners.

"CornerStone is a market leader that has all the ingredients for long-term success," said Marc Leder, Co-CEO of Sun Capital Partners. "With our industry experience and operational expertise, we will support management in executing initiatives designed to continue to grow and improve the business."