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Chicago, Illinois, June 30, 2010 — Wind Point Partners is pleased to announce that Ryt-way Industries (“Ryt-way”), a Wind Point Partners portfolio company, has acquired the food and beverage and equipment and manufacturing businesses of Cloud Packaging Solutions, including Cloud Packaging Services, Cloud Equipment Company and Toll Packaging Services (together, “Cloud”), a part of Cameron Holdings’ contract packaging portfolio business. Cloud will add over $50 million of revenue to Ryt-way, bringing total Ryt-way revenue to approximately $200 million.
Ryt-way, based in Lakeville, Minnesota, is a leading contract packager of dry food products such as ready-to-eat cereals, prepared meals, side dishes, beverages and sweeteners.
Cloud is a contract packager of food and consumer products, including powdered beverages, sweeteners, fruit snacks, oatmeal, hot cereal, coffee, baby food and pet treats. Cloud also designs and manufactures high-speed packaging equipment.
Both entities bring long-term relationships with many of North America’s leading consumer packaged goods food companies. The combination will transform Ryt-way into a “one-stop shop” that can provide its customers with a broad suite of packaging options, technological advantages, and category expertise for the packaging of an array of dry foods, including cereals, prepared meals, snacks, sweeteners, side dishes, desserts, dried fruit, nutraceuticals, and pet foods. In addition, Cloud adds four Illinois facilities to the Ryt-way’s two facilities in Minnesota.
Mark Burgett, a Wind Point managing director, commented, “We are excited about this highly complementary acquisition for Ryt-way. Customers will benefit from the new capabilities and locations, which will provide Ryt-way with excellent growth opportunities.”
Wind Point acquired Ryt-way in August 2008 in partnership with David Finch, who joined Ryt-way as CEO, and George Bayly, who joined as Chairman. Previously, David was Group Vice President of Johnsonville Sausage and George was Chairman and CEO of Altivity Packaging.
David Finch stated, “By bringing these companies together we will be better positioned to offer each of our customers more comprehensive solutions in contract packaging, new product commercialization, and innovation. Each company brings to the table a strong set of competencies, excellent people, and proven industry know-how. Each is a respected leader in their industry segment.”
Senior debt participants include GE Capital Markets as Co-Lead Arranger and Joint Bookrunner, CIT Sponsor Finance as Co-Lead Arranger and Joint Bookrunner, CIT HOME / Commercial & Industrial as Co-Syndication Agent, Fifth Third Bank as Co-Syndication Agent, and ING Capital as Documentation Agent. Norwest Mezzanine Partners provided subordinated debt. KPMG, LLP served as a transaction advisor. Legal counsel for Wind Point on the transactions was Kaye Scholer, LLP.
About Wind Point Partners
Wind Point Partners is a private equity investment firm with $2.7 billion of capital commitments in active funds. Wind Point focuses on partnering with top caliber CEOs to acquire middle market businesses with a clear path to value creation. Additional information about Wind Point is available at www.windpointpartners.com.
About Cameron Holdings
Cameron Holdings is a private equity investment firm that specializes in the acquisition and operation of middle market manufacturing and industrial service companies. Since its beginning in 1978, Cameron has developed a long and successful track record of completing 35 transactions with an aggregate transaction value in excess of $1.0 billion. Additonal information is available at www.cameron-holdings.com.
About Ryt-way Industries
Ryt-way is a leading value-added contract manufacturer and packager. Ryt-way serves its customers through six manufacturing facilities in Minnesota and Illinois. Additional information about Ryt-way is available at www.rytway.com.
About Cloud Packaging Solutions
Cloud Packaging Solutions, based in Des Plaines, Illinois, is a leading contract packager of dry foods using high speed, flexible film packaging systems. Cloud Packaging Solutions is a leader in dry mix categories such as beverages, hot cereals, confections and sweeteners. Cloud Packaging Solutions offers both primary and secondary packaging services in two facilities in Des Plaines. Additional information about Cloud Packaging Solutions is available at www.cloudeg.com.
About Cloud Equipment Company
Cloud Equipment Company, based in Des Plaines, Illinois, is a leading manufacturer of high-speed packaging equipment for pouch and packet products, and thermoform applications. Cloud equipment is a market leader in speed, accuracy, and quality. Cloud Equipment Company provides both equipment and engineering solutions for its customers. Additional information about Cloud Equipment is available at www.cloudeg.com.
About Toll Packaging Company
Toll Packaging Company, based in Gibson City, Illinois, is a leading contract packager of dry foods for both human and pet food markets. Toll is a leader in flexible, mid-speed packaging solutions. Additional information about Toll Packaging is available at www.tollpackaging.com.
