The Daily Deal

Dr. Leonard's goes to AmeriMark
by Paul Bonanos

Published: December-17-2007

Dr. Leonard's Healthcare Corp., a catalog retailer targeting the over-55 market, will be acquired by AmeriMark Direct LLC in an add-on buy of undisclosed size fueled by private equity firm JH Partners LLC.

The deal, announced Monday, Dec. 17, by San Francisco-based JH, provides an exit for Cortec Group Inc., a New York buyout shop that acquired Dr. Leonard's in 2002 for about $200 million and recapitalized the company in 2005.

JH said the union of Edison, N.J.-based Dr. Leonard's and AmeriMark will create a company with combined annual sales of $425 million.

AmeriMark of Cleveland sells apparel, health and beauty products online and through catalogs. Its lines, aimed at women, include Anthony Richards, Beauty Boutique, Complements, Essentials, Healthy Living, Time for Me, The Feel Good Store and Windsor Collection.

Dr. Leonard's, which also sells online as well as through catalogs, offers health and personal-care products, supplements, exercise equipment, beauty aids and similar products targeting people over 55.

JH said the combined customer base of AmeriMark and Dr. Leonard's will exceed 6 million people.

CIT Group Inc. of New York arranged a credit facility, and Ableco Finance LLC of New York and Prudential Capital Group of Chicago also helped supply debt. Prudential also provided equity capital in the deal.

Investment bank Goldsmith Agio Helms/Lazard Middle Market of Minneapolis served as Dr. Leonard's financial adviser.

Both AmeriMark and Dr. Leonard's will remain in their existing locations, and management from both organizations will be retained.

JH first invested in AmeriMark in March 2005, taking a stake of undisclosed size. A trade publication reported that JH acquired a 75% stake in the catalog retailer at the time. The firm conducted a recapitalization the following year.

JH has also invested in kitchenware catalog retailer Chef's Catalog of Colorado Springs, Colo., and it sold its stake in housewares catalog seller Walter Drake of Colorado Springs to Blyth Inc. of Greenwich, Conn., in late 2003.