MRO Magazine

Swanson Health Products Acquired by Swander Pace Capital


January 25, 2016
By Business Wire News

FARGO, N.D.

Swanson Health Products announced today that it has been acquired by Swander Pace Capital, a leading private equity firm specializing in investments in consumer products companies. The acquisition closed January 22, 2016. Swanson is a leading privately held online and catalog marketer of Swanson-branded and third-party healthy living products.

Swanson’s founder, Lee Swanson, is retiring but will remain as a consultant providing leadership for the company’s highly successful new product development program. “I want to thank our CEO Ken Harris, CFO Doug Anderson, COO Terry Kraft and CIO Dean Plante for their help in growing Swanson and making this transaction possible,” stated Lee Swanson. “Swander Pace Capital, with their long history of success investing in healthy living and entrepreneurial consumer products businesses, is the perfect partner to lead Swanson over its next phase of growth.”

Harris and the senior management team will remain in their current positions. “Lee Swanson built a great company and an outstanding brand over the past 47 years with a modern technological and distribution platform to sustain rapid future growth,” stated Harris. “With Swander Pace we look forward to taking the company to the next level as we broaden our reach into new fast-growing healthy living categories. We look forward to a prosperous 2016.”

Swanson had an extremely successful year in 2015, generated strong sales and profit growth, increased its SKU count to 27,000, and introduced additional natural and organic food and beauty products. The company also realized a 43% increase in international sales, expanded its footprint on Amazon and other online market places, and acquired the Health Center for Better Living. During the recent cyber weekend, Swanson’s revenues exceeded the prior year by over 50% while the industry average was 13%.

The family-founded business reaches consumers through its significant e-commerce operations as well as its catalog. In addition to its North American base, Swanson services consumers globally through online operations and distributors in 51 countries.

“Swanson has established itself as the leader in online and catalog marketing of healthy living products,” said Corby Reese, a managing director at Swander Pace Capital. “The company is extremely well-positioned to take advantage of trends in healthy living, natural and organic lifestyles, and a more active, aging population. We look forward to partnering with the Swanson team to accelerate the company’s growth.”

About Swanson Health Products

Swanson is a marketer of Swanson-branded and third-party-branded healthy living products. The company carries over 27,000 health and wellness products including vitamins, minerals, supplements, sports nutrition, natural food, and beauty products. Headquartered in Fargo, ND, the company operates out of three modern distribution centers located across the United States. For more information, visit www.SwansonVitamins.com.

About Swander Pace Capital

Swander Pace Capital is a leading private equity firm specializing in investments in growth-oriented, middle-market consumer products companies in North America and the United Kingdom. For the past 20 years, Swander Pace Capital has pursued a consistent strategy of investing in consumer products companies with leading market positions in attractive, defensible niches. With cumulative equity commitments of approximately $1.3 billion, and staff in San Francisco, New Jersey, and Ontario (Toronto), Swander Pace Capital provides portfolio companies with a unique mix of financial, strategic, and tactical support to create long-term value. For more information, visit www.spcap.com.

THE BECKWITH COMPANY
David Beckwith, 323-845-9836
david@thebeckwithcompany.com