TRANSACTION DESCRIPTION
Goldsmith Agio Helms / Lazard Middle Market represented the Cortec Group in the sale of its portfolio company Dr. Leonard's Healthcare Corporation to AmeriMark Direct, LLC, a direct marketer of women’s apparel, accessories and health related merchandise.  Dr. Leonard's is a   New Jersey-based direct-marketer of health aids and convenience products targeted at the value-conscious elderly consumer.

This is the 51st transaction completed by the firm's Specialty Retail and Direct Marketing Group.

The two leading catalog businesses currently generate combined sales in excess of $425 million. The combined company will have over six million active customers over 55 years of age, one of the largest databases of this market segment in the industry. AmeriMark’s operations in Cleveland and Dr. Leonard’s facilities in Edison, NJ and Lincoln, NE will not be relocated.

JH Partners LLC, a private equity firm specializing in consumer products and services companies, led the acquisition and provided the equity financing alongside AmeriMark management.

With the completion of this merger, Louis Giesler is President of AmeriMark Direct and Tom McIntrye is President of Dr. Leonard's.  The new parent organization of the two operating units is AmeriMark Holdings, with Gary Giesler as President and CEO, Joe Albanese as Executive Vice President and CFO, and Diane Huzar as Executive Vice President of all Marketing and Merchandising for both subsidiaries.

“The marriage of these well-established successful businesses that serve a similar customer is truly an opportunity to enhance both companies through many exciting synergies,” said Giesler. “A large and solid customer base coupled with AmeriMark’s innovative marketing strategies and Dr. Leonard’s first class sourcing and fulfillment capabilities provide a powerful combination.” McIntyre added, “We are looking forward to working together and building a world-class organization using the best-of-breed capabilities from both companies. This will be a collaborative effort recognizing the strengths and talents of both management teams.”

“We look forward to continuing our outstanding three-year relationship with Gary and his team and welcome the Dr. Leonard’s employees to our direct marketing family,” said Michael John of JH Partners. “We are confident that the breadth and depth of experience on the expanded management team will create significant value for all stakeholders including customers, employees, vendors, and investors.”

CIT arranged a senior secured credit facility to support the acquisition and Ableco Finance LLC and Prudential Capital Group participated in the financing. Prudential Capital Partners also led a senior subordinated notes issuance and was an equity co-investor.

ABOUT AMERIMARK DIRECT
AmeriMark Direct, LLC is a leading direct marketer of women’s apparel, name brand cosmetics and fragrances, jewelry, watches and accessories, and health-related merchandise.  In business for over 38 years, AmeriMark sells its merchandise through several distinctive catalogs including Anthony Richards, Beauty Boutique, Complements, Essentials, Healthy Living, Time for Me, The Feel Good Store, and Windsor Collection and ships millions of packages to its satisfied customers each year.  AmeriMark also offers membership in its Passport to Health, Passport to Savings, and ID Sentinel Alert membership programs. www.amerimark.com