Acosta Sales & Marketing Secures Equity Investment From Thomas H. Lee Partners

JACKSONVILLE, Fla., Jan. 5, 2011 /PRNewswire/ -- Acosta Sales & Marketing, a leading full-service sales and marketing agency in the consumer packaged goods (CPG) industry, today announced it has signed a definitive agreement for an equity investment by Thomas H. Lee Partners ("THL"), a Boston-based private equity investment firm.

The transaction will fuel the continued expansion of Acosta's service offerings into new strategic areas, as well as enhance the existing suite of services that have made Acosta the most trusted outsourced provider of sales and marketing services for leading CPG brands today.

"We are pleased to announce the completion of our equity investment agreement with Thomas H. Lee Partners, which has a long-established track record of successful partnerships with large growth-oriented companies such as Acosta," said Robert Hill, President & CEO of Acosta. "Together we share the same drive and commitment to expanding Acosta's reach and continuing to optimize our service offering for our clients and customers."

"As a market leader that delivers sales and marketing services to the CPG industry, Acosta presents an ideal investment opportunity," said Kent Weldon, Managing Director at THL. "We have great confidence in the Acosta management team and look forward to partnering with them to continue to build the company and provide exceptional service to its clients and customers."

With this transaction AEA Investors will be selling its ownership stake in Acosta and THL will become Acosta's new financial partner. Since Acosta first announced its partnership with AEA in 2006, the company has grown to more than 17,000 associates in 65 locations throughout the U.S. and Canada. Acosta currently represents 66 percent of the #1 and #2 brands in the CPG industry today.

Following the transaction, senior management will stay in place, and there will be no changes to Acosta's operations.  As in the past, Acosta's broad management team continues to have significant ownership of the company. The transaction is expected to close in the next 60 days, and the terms of the transaction were not disclosed. BofA Merrill Lynch acted as financial advisor, and Fried Frank Harris Shriver and Jacobson acted as legal counsel to Acosta in connection with this transaction. Barclays Capital ("Barclays") and Goldman, Sachs & Co. ("Goldman Sachs") acted as financial advisors and Weil, Gotshal & Manges LLP acted as legal advisor to THL in connection with the transaction.  Committed debt financing for the transaction has been provided by certain affiliates of Goldman Sachs, including its principal mezzanine and loan funds, and Barclays. Affiliates of Goldman Sachs also committed to make an equity investment in Acosta.  

About Acosta Sales & Marketing

With more than 80 years of experience, Acosta is the sales and marketing powerhouse behind more than a thousand of the biggest brands you see in stores every day. With more than 17,000 associates in 65 locations throughout the U.S. and Canada, Acosta represents 66 percent of the #1 and #2 brands in the CPG industry today. Acosta provides a range of outsourced sales, marketing and retail merchandising services to effectively move products off shelves and into shoppers' baskets, ensuring that clients achieve their true sales potential. For more information, visit www.acosta.com.

About Thomas H. Lee Partners

Thomas H. Lee Partners ("THL") is one of the world's oldest and most experienced private equity firms. The firm invests in growth-oriented global businesses, headquartered principally in North America, within three broad sectors: Consumer & Healthcare, Media & Information Services and Business & Financial Services. THL's team of investment and operating professionals partner with its portfolio company management teams to identify and implement business model improvements that accelerate sustainable revenue and profit growth. Since its founding in 1974, THL has invested in more than 100 portfolio companies and has completed over 200 add-on acquisitions, representing a combined value of more than $150 billion. THL's two most recent investment funds comprise more than $14 billion of aggregate committed equity capital. Notable transactions sponsored by THL include Aramark, Clear Channel, Dunkin' Brands, Michael Foods, Ceridian, Experian, Fidelity National Information Services, Houghton Mifflin, inVentiv Health, Intermedix Corporation, MoneyGram International, The Nielsen Company, ProSiebenSat.1, Snapple, Warner Chilcott, Warner Music Group and West Corporation. For more information, please visit www.thl.com.

SOURCE Acosta Sales & Marketing

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