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Windjammer Capital Investors has been awarded "Middle Market Firm of the Year: North America" in two consecutive years, 2011 and 2012, by DealMakers Monthly magazine.

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Oct, 2010 - Windjammer Exits Investment in S.T. Specialty Foods


Windjammer Capital Investors is pleased to announce the successful exit of its investment in S.T. Specialty Foods, Inc. ("S.T. Specialty Foods" or the "Company") through a sale to TreeHouse Foods, Inc. (NYSE: THS). Windjammer acquired the Company in December 2008 and invested approximately $62.0 million in a combination of equity and subordinated debt to consummate the buyout in partnership with the Company's management team. The investment generated total proceeds of $135.4 million to date plus additional proceeds in escrow and a possible earn-out depending upon the Company's 2010 financial performance.

Headquartered in Brooklyn Park, MN, with an additional facility in Kenosha, WI, S.T. Specialty Foods is the leading North American manufacturer of private label and store branded, dry shelf-stable dinners and side dishes. The Company serves a diverse customer base in the grocery retail, discount retail, wholesale, mass merchandiser, and specialty retail channels. Macaroni and cheese dinners, add-meat skillet dinners, rice dinners, potato side dishes, and meatless side dishes are among the many products the Company manufactures.

Windjammer's investment thesis in S.T. Specialty Foods centered on the Company's market leadership position that resulted from its product development expertise, world class manufacturing, and an intense focus on customer service that the management team pursued as a core value. During Windjammer's ownership, the Company expanded capacity 50%, implemented a new ERP system and obtained food safety certifications that collectively positioned S.T. Specialty Foods to accelerate its introduction of new products and new customer wins. The ability to drive meaningful value creation through organic growth initiatives and operational enhancements allowed both management and Windjammer to achieve their collective investment objectives well ahead of the original plan.

"We were very fortunate to have Windjammer as our partner," said Dale Schulz, CEO of S.T. Specialty Foods. "Their expertise in working with niche-oriented, leading companies in the middle market, as well as their strategic guidance and resources were valuable to us as we expanded the business." Ray Turcotte, CFO of S.T. Specialty Foods, added: "Windjammer was very willing to invest in the business to improve our operations. Also, their ability to provide both the equity and the subordinated debt was a key differentiating factor in enabling the initial transaction to get done in December 2008 during the height of the credit crisis."

Windjammer Capital Investors, with offices in Newport Beach, California and Waltham, Massachusetts, is a national private investment firm that makes control and non-control investments in leading middle market businesses in partnership with management. Founded in 1990, Windjammer manages institutional funds totaling over $1.2 billion of capital and is currently investing out of its latest fund of $575 million which was raised in 2006. In its history, Windjammer has closed on portfolio company investments with an aggregate value exceeding $7 billion.

Please contact Costa Littas, John Donahue or Caleb Clark for additional information concerning the investment or visit our website at www.windjammercapital.com.

"We were very fortunate to have Windjammer as our partner. Their expertise in working with niche-oriented, leading companies in the middle market, as well as their strategic guidance and resources were valuable to us as we expanded the business."



Dale Schulz, CEO
ST Specialty Foods