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Date Jan 10, 2011
Source TA

TA Associates Completes a Majority Investment in Dymatize Enterprises

TA Associates, a leading growth private equity firm, today announced it has completed a majority investment in Dallas-based Dymatize Enterprises, Inc., a manufacturer and marketer of branded and private label nutritional and sports supplements. As part of the transaction, the company’s founders will continue with the company and retain a significant portion of their equity.

Serving fitness enthusiasts and athletes, Dymatize offers more than 200 branded and private label products in numerous categories, including protein, pre- and post-workout, gainers, creatine, functional foods and other specialty products. Known for a commitment to product quality and safety, Dymatize employs a vertically-integrated business model whereby it manufactures the majority of its products in company-owned facilities. The company sells largely to independent retailers via a network of domestic and international distributors and has a significant and growing presence in specialty retailers such as The Vitamin Shoppe, GNC and bodybuilding.com. Dymatize products are distributed in more than 50 countries in Asia, Europe, North America and South America. The company was founded in 1994.

“We are excited by the opportunity to partner with current management and build upon Dymatize’s past success,” said William D. Christ, a Senior Vice President at TA Associates who will join Dymatize’s Board of Directors. “The company’s desire to produce high quality reasonably priced sports supplements products, its vertically-integrated model and its expansive international presence, make Dymatize a unique company in the sports supplements industry.”

“Adherence to the highest quality standards is a hallmark of Dymatize,” said Ted Casey, CEO, Dymatize. “TA shares that commitment to quality and can provide the financial support, strategic guidance and significant network of contacts to help us further grow the company. We look forward to a fruitful and mutually-beneficial relationship.”

“TA Associates is the first institutional investor in Dymatize since Ted and I started the company more than 15 years ago,” said Michael Casid, President, Dymatize. “We chose TA as a partner because of the firm’s financial and strategic resources, coupled with their many years of experience investing in profitable and growing retail and consumer companies.”

According to the National Business Journal (NBJ), the sports nutrition and weight loss industry is a $22.7 billion market, with an estimated compounded annual growth rate of 5.9% from 2005 to 2015. The subcategory of sports nutrition supplements was estimated at $3 billion in 2009 and is expected to experience a compounded annual growth rate of 7.4% from 2005 to 2015. The international sports supplement market is estimated at $1.5 billion, according to Euromonitor. Sales channels include specialty retailers, online retailers, supermarkets, drugstores, mass merchants, multi-level marketing organizations, mail order companies and a variety of other smaller participants.

“Sports supplements, particularly basic products like proteins, are gaining much more mass acceptance,” said Jeffrey S. Barber, a Managing Director at TA Associates who will also join Dymatize’s Board of Directors. “The 18 to 30-year-old male is no longer the only target demographic for the core sports supplement products. The global trend of increased interest in health and wellness should bode well for Dymatize.”

TA Associates has more than four decades of investing experience, focusing on profitable growth companies. TA’s prior investments in the consumer and retail sectors include 5.11®, AND 1, Car Toys, Cath Kidston, Eastern Mountain Sports, HVL, Jenny Craig, Lumber Liquidators, M and M Direct, Micromax Informatics Limited, Natrol, PowerBar, Tempur-Pedic International and United Pet Group.

Goodwin Procter LLP provided legal counsel to TA Associates. Nelson Mullins Riley & Scarborough, LLP provided legal counsel to Dymatize Enterprises. McColl Partners provided advisory services to Dymatize and Imperial Capital, LLC provided advisory services to TA Associates.

About Dymatize Enterprises, Inc.
At Dymatize®, maximum performance meets maximum quality. Dymatize is a world-renowned sports nutrition manufacturer, producing both GMP Certified by NSF™ and pharmaceutical licensed quality sports nutritional products. The company designs and manufactures over 200 different nutritional supplements to sustain, enhance and energize fitness enthusiasts of all levels worldwide. Dymatize is recognized as one of the few nutrition companies to own and run its own U.S. manufacturing plants, making Dymatize one of the most quality-controlled, innovative and independently tested brands of sport supplements available. For more information, please visit www.dymatize.com.

About TA Associates
Founded in 1968, TA Associates is one of the largest and most experienced middle market private equity firms. The firm has invested in over 400 companies and manages more than $16 billion in capital. With offices in Boston, London, Menlo Park and Mumbai, TA Associates leads buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare and consumer industries. More information about TA Associates can be found at www.ta.com.