News

March 20, 2001

Norwest Mezzanine Partners’ Capital Allows For Expansion At Cosmetic Essence

Brockway Moran Brings Industry Experience to the Table

Norwest Mezzanine Partners announced today its investment in Cosmetic Essence, Inc. The Holmdel, New Jersey-based company is a leading provider of out-sourced manufacturing, filling and packaging services to the U.S. personal care products industry. Cosmetic Essence has dominant expertise in alcohol-based fragrances.

The transaction closed on March 20, 2001, and Norwest Mezzanine invested $14,475,000 of senior subordinated debt with warrants and $250,000 in equity. The transaction was structured as a recapitalization, and Boca Raton, Florida-based Brockway Moran & Partners is the equity sponsor. “With the Cosmetic Essence transaction, we required capital structure flexibility to accommodate the anticipated growth and expansion needs,” indicates Michael Moran, managing partner at Brockway Moran. “Norwest Mezzanine worked with us to provide a solution that was both fair and flexible.”

Michael Hall, partner with Norwest Mezzanine, notes, “Cosmetic Essence is unique in that it offers the characteristics of a recession-resistant business coupled with the tremendous growth potential associated with contract filling. As the equity sponsor, Brockway Moran will provide valuable strategic direction with their historical experience in the industry. We look forward to being a part of Cosmetic Essence’s future growth.”

Norwest Equity Partners (NEP) is a leading middle market investment focused on partnering with business owners and building companies into industry leaders. With a reputation for quality investments and exceptional financial returns since 1961, NEP manages nearly $5 billion of capital through a series of equity and mezzanine funds. Offering creative and flexible transaction solutions through management buyouts, recapitalizations and growth financings, NEP seeks $30-$150 million equity investment opportunities for growing and profitable companies within the agriculture, applied technology, business services, consumer products and services, distribution, healthcare and industrial industry sectors. NEP is headquartered in Minneapolis, Minnesota; please visit nep.com for more information.