FOR IMMEDIATE RELEASE
AmeriMark Direct Acquires Dr. Leonard's Healthcare
Cleveland and San Francisco – 12/14/07 – AmeriMark Direct, a direct marketer of health-related merchandise, women’s apparel and accessories has acquired New Jersey-based direct-marketer Dr. Leonard’s Healthcare Corporation. The two leading catalog businesses currently generate combined sales in excess of $425 million. The company will have one of the largest data bases in the over 55 years of age market segment with over six million active customers. AmeriMark’s operations in Cleveland and Dr. Leonard’s facilities in Edison, NJ and Lincoln, NE will not be relocated.
JH Partners LLC, a private equity firm specializing in consumer products and services companies, led the acquisition and provided the equity financing alongside AmeriMark management.
Upon the completion of this merger, Louis Giesler will become the President of AmeriMark Direct. Tom McIntrye will remain the President of Dr. Leonard's. AmeriMark Holdings will become the parent organization with Joe Albanese as Executive Vice President and CFO, Diane Huzar as Executive Vice President of all Marketing and Merchandising for both subsidiaries, and Gary Giesler as President and CEO.
“The marriage of these well-established successful businesses that serve a similar customer is truly an opportunity to enhance both companies through addition,” said Giesler. “Solid customer bases coupled with AmeriMark’s innovative marketing strategies and Dr. Leonard’s first class sourcing and fulfillment capabilities provide a powerful combination. The AmeriMark team very much looks forward to working with the Dr. Leonard's team to build a world-class organization using select best-of-breed disciplines from both companies. This will be a collaborative effort recognizing the strengths and talents of both management teams”
“We look forward to continuing our outstanding three year relationship with Gary and his team and welcome the Dr. Leonard’s employees to our direct marketing family.” said Michael John, of JH Partners. “We are confident that the breadth and depth of experience on the expanded management team will create significant value for all stakeholders including customers, employees, vendors, and investors.”
CIT arranged a senior secured credit facility to support to the acquisition and Cerberus and Prudential Capital Partners participated in the financing. Prudential Capital Partners also led a senior subordinated notes issuance.
About AmeriMark Direct
AmeriMark Direct is a leading direct marketer of women’s apparel, name brand cosmetics and fragrances, jewelry, watches and accessories, and health related merchandise. In business for over 38 years, AmeriMark sells its merchandise through several distinctive catalogs including Anthony Richards, Beauty Boutique, Complements, Essentials, Healthy Living, The Feel Good Store, and Windsor Collection and ships millions of packages to its satisfied customers each year. AmeriMark also offers membership in the Passport to Health, Passport to Savings, and ID Sentinel Alert buying programs. www.amerimark.com
About Dr. Leonard’s Healthcare Corporation
Dr. Leonard’s Healthcare Corp, based in Edison, NJ, is the leading direct mail marketer of healthcare, comfort and convenience products and general merchandise items targeted at the value conscious consumer for individuals over 55 years of age. The company manages two catalogs, Dr. Leonard’s and Carol Wright Gifts, providing a broad, value-priced assortment of affordable health and wellness products, and gifts and beauty aid products, establishing both as #1 catalogs in their respective markets. www.drleonards.com
About JH Partners LLC
JH Partners is a San Francisco-based private equity firm focused on investments
in growth-oriented middle market consumer products and services companies.
JH Partners has been instrumental in aiding the growth of powerful consumer
brands, including Bare Escentuals, Peet's Coffee & Tea, Design Within
Reach and Frette, among others. In 2006, the firm raised $350 million in its
second institutional fund to follow its inaugural $200 million institutional
fund from 2004. www.jhpartners.com
