Prior success in the consumer products area led J.W. Childs Associates to tap UBS to lead the $325 million financing backing its acquisition of fruit drink businesses Sunny Delight and Punica from The Proctor & Gamble Co. "They've done a number of financings for us and have been very successful in getting those done," said Adam Suttin, a partner with J.W. Childs. UBS has also provided financing to J.W. Childs for Meow Mix, American Safety Razor and European company Esselte, he noted. "We have confidence in [UBS], especially given the European tranche," Suttin said. "We think they have the global reach to sell loans to both U.S. and European investors." The deal will comprise first- and second-lien term loans. Approximately $100 million will be Euro-denominated and sold to European institutions.
Punica is primarily sold in Germany and Sunny Delight is sold in the U.S., Canada, Spain, Portugal, United Kingdom and France. "The debt is structured to match our earnings stream with our balance sheet," Suttin said. "We focus on consumer products, we think this one has a strong brand name, strong market position, and good growth prospects through geographic expansion and new products." Syndication is expected to launch around the end of the month. The purchase price was not disclosed. P&G officials and UBS bankers did not return calls.