DPI

Industry

Manufacturer - Private-Label Food

Company Profile

Destination Products International ("D.P.I.") was a wholly-owned subsidiary of the Cott Corporation, the largest private label soft drink company in the world. D.P.I. was the largest developer and manufacturer of premium quality retailer-branded food products for grocery chains in the U.S. The Company occupied a unique market, and had strong customer relationships with eight of the largest grocery chains.

NewPoint’s Role

NewPoint was retained as exclusive financial advisor by the management of D.P.I. to negotiate the purchase of the business and to structure and raise the capital to affect the management buyout. NewPoint marketed the business to a variety of potential capital providers and assisted the management team in all aspects of its transition from being an integrated division of large public company to a stand-alone entity.

Transaction Snapshot

Cott allowed management a first right of refusal to make an offer for the business. NewPoint determined an appropriate valuation for the business, and was successful in raising the acquisition capital in a manner that maximized Management’s equity position at closing.