Prospect Partners Teams With
Veteran Industry Executive Donald C. McCann to Acquire Leading Maker
of Customized Foodservice Disposable Products
McCann to Lead Spirit Brands; Investment is Seventh Platform of
Prospect Partners II, L.P.
25, 2006: Prospect Partners, LLC, along with veteran industry executive
Donald C. McCann and management, are excited to announce the formation
of Spirit Foodservice Products, Inc. to acquire Spirit
Brands, Inc. of Andover, Massachusetts. Spirit Brands, best known
for its custom Swizzle Sticks, is a leading manufacturer and marketer
of specialty and customized disposable plastic serving products
sold worldwide through foodservice and specialty advertising distributors,
restaurant chains, casinos, nightclubs and bars.
Mr. McCann, who invested
in Spirit and will run the company as President and Chief Executive
Officer, has a long track record of growth at a number of foodservice
packaging companies. He has most recently co-invested with Prospect
Partners in a number of successful packaging companies. Before that,
he was CEO and principal owner of ELM Packaging Corporation, a manufacturer
of foam polystyrene packaging for foodservice and consumer markets
that was sold in 1998. He also has served in executive positions
at Mobil Packaging and Diamond International Corporation.
"I look forward to
working with Spirit's talented management to aggressively grow the
company through new product development and acquisitions,"
Mr. McCann says. He will be joined in daily business operations
by Spirit's current team of Joseph R. Pierro, Vice President, Sales
& Marketing; Robert J. Morissette, Vice President, Operations;
and Peter M. Maki, Chief Financial Officer. Management will be significant
shareholders in the new firm.
Spirit was founded in
1934 by Jay Sindler, the inventor of the Swizzle Stick. Over the
past 70 years, Spirit has invented numerous plastic products for
the foodservice industry, including Steak Markers and sword- and
prism-shaped food picks. It is the market leader in the stirrers,
picks and specialty straws industries. Spirit's products also include
promotional cups, napkins and servingware.
"Spirit is a great
example of a small niche leader with sizable growth opportunities,"
says William V. Glastris, Jr., a Principal at Prospect Partners.
"We have had a long and successful 13-year history investing
with Don McCann and have seen firsthand where he's capable of taking
Mr. Pierro adds, "With
our new partnership with Don and Prospect Partners, we are excited
about the opportunity to implement the growth strategy we have envisioned
for some time. Spirit offers foodservice operators a great value
proposition. Our custom and semi-custom products are an inexpensive
way to advertise but can deliver a significant impact on profitability
and brand image."
In pursuing their growth
objectives for Spirit, Mr. McCann and Prospect Partners will actively
pursue add-on acquisitions of companies involved in complementary
Spirit's Board of Directors
will include Mr. McCann, Mr. Glastris and Prospect Partners' Vice
President David J. Choe.
Prospect Partners' previous
investments with Mr. McCann as an independent equity sponsor include
current platform Knight Packaging
Group, Inc., Wrap Pack
Products Corporation and ELM Packaging.
Spirit is the seventh
platform company of Prospect Partners II, LP, the $165 million private
equity fund that closed in June, 2004. The Fund's other platforms
include Velvac Holdings, Inc., a leading provider of exterior mirror
systems and other parts for trucks, RVs and specialty vehicles;
Codel Holding Company, a fabricator, assembler, marketer and distributor
of pre-hung steel and fiberglass entry door systems for residential
homes; Pipp Mobile Storage Systems Holding Company, a manufacturer,
designer and installer of movable shelving and storage systems;
Kronos Foods, Inc., a leading Greek foods manufacturer; Industrial
Hoist Services, LP, a leading national provider and lessor of hoists
used in industrial applications; and Superior Tool Holding Company,
a manufacturer and distributor of a complete range of professional
and consumer pipe-working and specialty plumbing tools.
About Prospect Partners
Prospect Partners, LLC
of Chicago, Illinois is a leading investor in unique lower-middle-market
companies, managing two private equity funds totaling $270 million.
Since its inception in 1998, Prospect Partners has focused on management-led
leveraged acquisitions of small niche leaders with revenues typically
between $10 and $30 million; the firm has invested in more than
45 leading companies within many niche consumer, commercial, specialty
distribution and service markets throughout the United States.