November 2011

Prospect Partners Acquires Dealers From Culligan International, Forms New Platform in Water Treatment

Prospect Partners has acquired eleven of the company-owned dealers of Culligan International, a Rosemont, Ill.-based global provider of household, commercial, and industrial water treatment products and services. In the acquisition, Prospect Partners partnered with two veteran Culligan operating executives and independent equity sponsor Stone Pointe, LLC, of Naperville, Ill. The acquired dealers, which cover six states, will continue to operate independently under the Culligan brand as units of a new platform company called Prospect Water Co. LLC.

Driven by its mission of providing "better water, pure and simple," Culligan, founded in 1936, is a worldwide water treatment leader, with a presence in 90 countries. As the industry's top brand, Culligan is the natural choice for consumers and businesses facing "hard water" or other "problem" water issues. The company distributes its water softeners, water filtration systems, bottled water, and other related products and services through a network of approximately 900 independently franchised and company-owned dealers.

The dealers acquired by Prospect Partners and Stone Pointe are located in New York, Connecticut, Rhode Island, Ohio, Indiana, and Washington.

"We are excited to enter the water treatment segment and to back a talented management team in further building our independent Culligan franchises in their markets," said Louis Kenter, a Founding Principal of Prospect Partners. "We also look forward to partnering with Stone Pointe's Principal Lee Vandermyde, a proven independent equity sponsor we have known a long time and have worked with on other investments."

Going forward, Prospect Water Co. seeks to acquire other Culligan franchises, independent water service dealers, and providers of commercial or industrial water purification services.

Serving Prospect Water Co.'s Board are Mr. Kenter, as Chairman, and Prospect Partners' Vice President Brad O'Dell and Stone Pointe's Mr. Vandermyde, as Directors.

To discuss related investment opportunities, contact Mr. Kenter or Mr. O'Dell.

Platform Tender Products Acquires Comfort Gear, Expanding Distribution Network and Product Line

Tender Products, Inc., a leading maker of popular personal care products and outdoor kits under such brands as AfterBite®, Ben's®, and Adventure® Medical Kits, has acquired Comfort Gear, Inc., a Keene, N.H.-based maker of safety and first-aid kits sold primarily through the promotional product market.

The move gives Tender — which traditionally has reached consumers through mass merchant retailers, drugstore chains, and sporting goods stores — entree into the promotional product distribution channel. Comfort Gear, also known as Ready4Kits, is a highly specialized business focused on producing short-run and custom kits on quick lead times.

To discuss related investment opportunities, contact Prospect Partners Founding Principal Rick Tuttle or Vice President Brad O'Dell.