J.W. Childs Associates, L.P. -- Private Equity Investments

J.W. Childs Associates, L.P. ("JWC") is a private equity firm based in Boston, Massachusetts specializing in leveraged buyouts and recapitalizations of middle-market growth companies. Since 1995, JWC has invested in companies with a total transaction value of over $10 billion. We currently invest through J.W. Childs Equity Partners III, L.P., an investment fund with total committed capital from financial institutions, pension funds, insurance companies and university endowments of $1.75 billion. When making investments, we:

Focus on middle-market companies that have the capability to expand operating earnings at greater than 10% per year. Such a capability is a function of the quality of management, the market opportunity for the company's products or services, barriers to competition and high return investment opportunities.

Focus on acquiring companies in the consumer products, healthcare, specialty retail and asset management sectors. While we are opportunistic in seeking growth oriented investments, these sectors are the areas in which our partners have relevant experience and in which we have generated our greatest investment success.

Involve partners with operational backgrounds in the due diligence process and subsequent development of acquired companies. These partners bring a unique perspective to both the acquisition and growth processes and, while not active in day-to-day portfolio company management, provide a helpful sounding board to our management partners.

Invest only in transactions in which senior management is making a financial commitment that is personally significant, and structure incentive compensation plans that powerfully motivate management to achieve their operating objectives by offering entrepreneurial-size rewards.

Engage only in friendly transactions to maximize access to reliable information about prospective acquisitions. Such information is most effectively developed in close partnership with management.
Capitalize companies with sufficient equity to support growth, often resulting in lower leverage ratios than are typical for leveraged buyouts. It has been our experience that growth outweighs leverage in producing exceptional returns.