Press Release
Source: Atkins Nutritionals, Inc. Parthenon Capital Acquires Majority Interest in Atkins Nutritionals, Inc.
Wednesday October 29, 5:21 pm ET
ANI Management Remains Intact; Sale to Yield Major Endowment For the Dr. Robert C. Atkins Foundation

BOSTON, Oct. 29 /PRNewswire/ -- Parthenon Capital, a leading middle-market private equity firm with offices in Boston and San Francisco, announced today that it had acquired a majority interest in Atkins Nutritionals, Inc. (ANI), the category leader in controlled carbohydrate information, food products and nutritional supplements. Goldman Sachs Capital Partners is also a significant co-investor in the transaction. Specific terms of the deal were not disclosed.

Parthenon Capital will have the controlling interest in Atkins Nutritionals in partnership with Goldman Sachs, the senior management of Atkins Nutritionals and Dr. Atkins' Estate. There will be no changes in ANI's management. Paul Wolff and Scott Kabak, ANI's CEO and President respectively, will be members of the Board of Directors with Wolff serving as Chairman.ANI's vision is to change the way the world eats to promote good health. The Atkins Nutritional Approach(TM) (ANA(TM)) has been validated by over 400 published studies in support of the scientific principles behind the ANA and in over 15 studies during the past three years, specifically on its safety, efficacy and health benefits. Today, the ANA is a nutritional plan that is finding increasing acceptance in many nations as people around the world suffer from health conditions resulting from the obesity and Type II diabetes epidemics.

Dr. Atkins' surviving spouse, Veronica Atkins said, "Bob and I, with the support of ANI's management, made the decision to welcome an investment in ANI because we knew that an investment in the company from people who support our vision would provide for a substantial endowment for The Dr. Robert C. Atkins Foundation, which in turn would ensure that funding would be available for scientific research on controlled carbohydrate nutrition. He would have been delighted to be working with Parthenon Capital and Goldman Sachs."

John Rutherford, co-CEO of Parthenon Capital said, "Atkins Nutritionals has a superb management team, the number one brand in the controlled carbohydrate category and a solid strategy for growth and long-term success. Parthenon Capital believes that ANI has an important mission that extends well beyond the financial numbers, and we are committed to continuing the current course and strategy of the company in partnership with the company's current management, employees, customers and suppliers."

"We consider this a very attractive investment opportunity," added Muneer Satter, Managing Director of Goldman Sachs. "Atkins Nutritionals is well-positioned for growth with a new product pipeline that may be one of the strongest and most promising of any food company in today's market."

Paul D. Wolff, Chairman and CEO of Atkins stated that, "The partnership with Parthenon Capital and Goldman Sachs is both essential and exciting. It provides the financial and intellectual resources necessary to drive ANI's vision and Dr. Atkins' dreams to an entirely new level."

Atkins Nutritionals, based in Ronkonkoma, Long Island, was founded by Dr. Robert C. Atkins in 1989. Today, Atkins Nutritionals is a fast-growing international enterprise providing a broad range of convenience foods, supplements, baked goods, snacks, condiments and information products designed to serve the millions of consumers who have adopted the controlled carbohydrate lifestyle. The company's products are sold in the natural, nutritional, food, mass and drug retail channels as well as direct through their catalog and Web site. For more information, please visit www.atkins.com.

Parthenon Capital is a leading middle-market private equity firm that was founded in 1998 and has $1.1 billion of capital currently under management. The firm provides strategic support and financing for recapitalizations, management buyouts, consolidations, privatizations and growth/expansion funding. Parthenon Capital is focused on partnering with middle-market companies with the goal of building them into world-class competitors. They invest in a variety of industry sectors with particular expertise in consumer products, food and beverage, business and financial services, healthcare, and value-added distribution. For more information, please visit www.parthenoncapital.com.

Goldman Sachs is a global leader in corporate equity and mezzanine investing. To date, Goldman Sachs has formed ten investment vehicles aggregating over $17 billion of capital. With $5.25 billion in committed capital, GS Capital Partners 2000 is the current primary investment vehicle for Goldman Sachs to make privately negotiated equity investments. GS Capital Partners seeks long-term capital appreciation by committing equity to high-quality companies with superior management in a variety of situations, including leveraged buyouts, recapitalizations, and growth investments to fund acquisition or expansion. The Fund invests across a broad range of industries and creates value through meaningful involvement with portfolio companies' strategic decision-making and operating philosophy. For more information, please visit www.gs.com/pia.



Source: Atkins Nutritionals, Inc.

http://biz.yahoo.com/prnews/031029/nyw172_1.html

I figured sooner or later someone would take interest... Atkins Nutritionals I predict is going to be a pretty darn good cash cow for these companies. I've heard that the demand for products is so great that they can barely keep up with manufacturing.