Parent Company Restructuring Provides MBO Opportunity
Industry: Developer and Manufacturer—Private-Label Food
Company Profile: Destination Products International ("D.P.I.") was a wholly-owned subsidiary of the Cott Corporation,
the largest private label soft drink company in the world. D.P.I. was the largest developer and manufacturer of premium quality retailer-branded
food products for grocery chains in the U.S. The company occupied a unique market, and had strong customer relationships with eight of the largest
grocery chains.
NewPoint’s Role: NewPoint was retained as exclusive financial advisor by the management of D.P.I. to negotiate the purchase of the
business and to structure and raise the capital to affect the management buyout. NewPoint marketed the business to a variety of potential capital
providers and assisted the management team in all aspects of its transition from being an integrated division of large public company to a stand-alone entity.
Transaction Snapshot: Cott allowed management a first right of refusal to make an offer for the business. NewPoint determined an appropriate
valuation for the business, and was successful in raising the acquisition capital in a manner that maximized Management’s equity position at closing.
