COSTA MESA, Calif. - July 30, 2004 -- Impact Confections, headquartered in Colorado Springs, Colorado, has acquired privately-held Melster Candies, Inc. of Cambridge, Wisconsin. Impact partnered with MVC Capital (NYSE: MVC), a publicly traded business development corporation and specialty finance firm, to complete the acquisition. Transaction terms were not publicly disclosed.
RSM EquiCo Capital Markets initiated the transaction, led the negotiations and acted as the exclusive financial advisor to Melster's owner, The Warrell Corporation.
"The Warrell Corporation sought to align Melster with an organization that could benefit from its strong brand, customer relationships and presence in both the seasonal and year-round segments," said Paul Weisbrich, senior managing director of RSM EquiCo Capital Markets. "RSM EquiCo Capital Markets launched a successful search to secure a buyer offering a complementary strategic fit.
"Impact Confections, whose success has largely resulted from its ability to continually develop new products, will greatly benefit from the consistent growth and relative stability of Melster's broad and established product line," Weisbrich continued. "Moreover, the acquisition will strengthen Impact's presence in the candy industry by providing the company with additional candy products and a strong sales team."
About Melster Candies, Inc.
Melster Candies manufactures, private labels and distributes seasonal novelty candies and traditional candies such as salt water taffy, peanut butter kisses, coconut toasties, chocolate-coated marshmallows and cream drops. Since its founding in 1919, the company has supplied the mass market with high quality confectionery products at a competitive price. Melster is best known for its market-leading marshmallow circus peanuts, which it has been making for over 25 years.
About Impact Confections
Impact Confections is the nation's largest manufacturer of three-dimensional lollipops, which it sells through mass merchants and convenience, drug and grocery stores. Impact Confections is considered a pacesetter in interactive candies (which add a toy-like element to confections) and has received numerous industry awards for product originality. The company's diverse product portfolio includes products such as Mega WarHeads®, Twist & Glow Pop, Lollipop Paint Shop®, Burstin' Bits(tm), Poppers, Sno-Cone Pop & Candy Syrup(tm), Soda Pop, Ice Cream Dipper(tm), Alien Pop® and Carousel Pop.
About RSM EquiCo, Inc.
RSM EquiCo is a leading global investment banking firm serving private middle-market companies throughout North America. With more than 400 professionals and support personnel, the firm specializes in mergers, acquisitions and divestitures for non-public companies with up to $500 million in annual revenues. Based in Costa Mesa, Calif., RSM EquiCo is part of RSM McGladrey Business Services, a business segment of H&R Block Inc. For more information, log on to www.rsmequico.com.