MidOcean Sells Majority Stake in VitaQuest

NEW YORK--MidOcean Partners, a New York- and London-based private equity firm, has agreed to sell its nearly one year-old 58-percent stake in West Caldwell, N.J.-based contract manufacturer VitaQuest International LLC to CK Life Sciences International, a Hong Kong-based biotechnology firm focused on environmental and health solutions, in a transaction valued at $345 million.

MidOcean, which investments in high quality middle market companies in consumer packaged goods and contract manufacturing, purchased its majority stake in Vitaquest in March 2005 for an undisclosed sum, citing potential growth trend in outsourced manufacturing and praising the highly customized products and customer service offered by Vitaquest. Together with Keith Frankel, chairman and chief executive officer (CEO) of Vitaquest, MidOcean helped recapitalize the leading contract manufacturer, growing it to an international status.

During our partnership with Vitaquest's management team led by Keith Frankel, Vitaquest was positioned to become a dominant global player in this space, said Rob Sharp, managing director of MidOcean and director of Vitaquest. We are proud of what Vitaquest has accomplished and believe that Vitaquest and its customers will benefit from its new and exciting partnership with CK Life Sciences and its affiliated companies."

Frankel added: MidOcean was a great partner for Vitaquest as we continued to grow and diversify our business model. Our relationship with MidOcean was a great experience for me personally, as well as for the company. We look forward to our partnership with the team at CK Life Sciences and believe that we will benefit greatly from their vast resources and international presence."

According to CK Life Sciences, which is owned by the multi-industry Cheung Kong Group, the Vitaquest acquisition is its first in the United States and will serve as a launch pad for further expansion in America. As the leader in the custom nutraceutical market, we believe Vitaquest is well positioned to continue its strong growth trajectory as the supplier of choice to third parties as well as to other companies within CK Life Sciences and the broader Cheung Kong Group," said H.L. Kam, president and CEO of CK Life Sciences.