News

March 10, 2003

Norwest Mezzanine Partners’ Capital Funds Milk Specialties’ Strategic Acquisition Of Buckeye Nutrition

Norwest Mezzanine Partners announced today a $7,500,000 investment in Milk Specialties Company (MSC). Proceeds were used by MSC to complete an add-on acquisition of Buckeye Nutrition. The acquisition closed March 7, 2003. Norwest Mezzanine invested senior subordinated notes with warrants and common equity in the transaction. Other terms of the transaction were not disclosed.

Milk Specialties Company is headquartered in Dundee, Illinois with manufacturing operations in Wisconsin. The company is a leading U.S. manufacturer of specialty animal nutrition products, and enjoys a worldwide reputation for its innovative offerings, which include calf milk replacers and energy supplements for ruminant and non-ruminant animals. MSC also has a growing presence in the companion animal health and nutrition sector through its National® business unit.

Buckeye Nutrition, of Dalton, OH, is a recognized leader in the manufacture and marketing of nutrition products for equine and other companion animals. The combination of Buckeye and MSC brings together companies with over 150 years of combined history, whose products are available throughout North America and in 35 countries on six continents.

The State of Wisconsin Investment Board (SWIB) is the lead investor in MSC. “Buckeye Nutrition offers a solid strategic fit for Milk Specialties. To become a premier provider of specialty animal nutrition products, the combined entity will continue to focus on research and development and strong manufacturing and marketing capabilities,” noted Jon Vanderploeg, portfolio manager for SWIB. “We view Norwest Mezzanine as an excellent financial partner to facilitate the vision of a diverse, growth-oriented platform company serving the animal nutrition industry.”

“The complementary attributes of the combined entity will drive the future success of the enhanced Milk Specialties Company,” according to Michael Hall, a partner at Norwest Mezzanine. “As management continues to find new opportunities, we look forward to partnering with SWIB to provide the growth capital necessary to support this platform expansion.”

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.