Those of you shocked by 1 article last year that sounded like Neways is going out of business, well now you can relax. Like every company fighting to maintain in these economic times Neways had to restructure.
SPRINGVILLE, Utah, Jan. 19, 2012 / Neways Enterprises, a worldwide leader in dietary supplements and personal care products, announced today that it has completed a comprehensive out-of-court restructuring, allowing the company to significantly reduce its debt. As a result of the transaction, private equity firm Z Capital Partners, L.L.C. and
funds affiliated with S.A.C. Capital Advisors, L.P. will in the aggregate own a majority of Neways. Golden Gate Capital will maintain an equity stake in the Company.
“We are pleased to have completed our restructuring and we appreciate the commitment that all our distributors, employees and vendors have clearly demonstrated throughout this process,” said Neways chief executive officer Scott St. Clair. “By eliminating a substantial portion of our debt, we have built a solid financial foundation that will allow us to significantly enhance our operating flexibility and further grow our business. I look forward to working with Z Capital, S.A.C. and other members of the ownership group towards achieving that goal.
“We have just concluded a fantastic year highlighted by our entrance into the Korean market,” St. Clair continued. “As we begin 2012, we remain on track to launch in Thailand and will pursue other exciting growth initiatives as opportunities arise. Further, our new capital structure will allow us to devote additional resources to developing exclusive products and IT tools, continuing to make progress on our path to environmental and social leadership, as well as preparing for our biggest-ever global reward trip to celebrate Neways’ 25 years of success in 2012. Neways truly has a bright future and we look forward to continuing to serve all our distributors across the world for many years to come.”
James J. Zenni, President and Chief Executive Officer of Z Capital, said, “We are excited to become shareholders of Neways at this exciting time for the Company. The restructuring has established a strong foundation for the Company and we are pleased to support Scott St. Clair and his team as they move the business forward.”
In November 2011, Neways announced that it was in active and constructive discussions with its lenders to refinance the Company’s capital structure. Today’s announcement represents a successful culmination of that process.
Representatives of Z Capital and S.A.C. Capital will join the Neways Board of Directors.
About Z Capital Partners
Z Capital Partners, L.L.C. is a leading, privately held Chicago-based middle market private equity firm that specializes in repairing the capital structures and optimizing the assets of distressed/challenged companies. Industries of interest include, but are not limited to, consumer products, steel, steel processors, agricultural, gaming, leisure/real estate, manufacturing, specialty services and automotive. Z Capital’s investors include prominent global endowments, financial institutions, pension funds, insurance companies, foundations, family offices, and wealth management firms. For more information, please visit www.zcap.net
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