Angelo, Gordon & Co.'s Net Lease Group Completes $30.4 Million Sale-Leaseback with KIK Custom Products

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Angelo, Gordon & Co.'s ("Angelo Gordon") dedicated Net Lease Group ("AG Net Lease") announced today that it acquired six of KIK Custom Products’ (“KIK”) manufacturing and distribution facilities located in Santa Fe Springs, CA, Rexdale/Etobicoke (Toronto), ONT (2), Memphis, TN, Auburndale, FL, and Salem, VA for $30.4 million. Proceeds of the sale-leaseback transaction will be used by KIK to reduce revolving indebtedness and to fund new capital projects. KIK is a portfolio company of New York-based CI Capital Partners (formerly Caxton-Iseman Capital) since May 2007.

In the today's credit market, companies and sponsors are increasingly turning to sale-leaseback transactions to improve their balance sheets

KIK is a leading contract manufacturer and distributor of national brand and retailer brand consumer products for Fortune 500 companies including Albertson's, Colgate-Palmolive, Dial, Johnson & Johnson, Kroger, Loblaws, L'Oreal, Procter & Gamble, Safeway, SC Johnson, Sysco, Unilever, Walgreens and Wal-Mart. KIK's product lines include Laundry, Household Cleaners, OTC Medicated, Pharmaceutical and Health & Beauty Care.

Teddy Kaplan, Managing Director and co-manager of AG Net Lease, commented, "KIK Custom Products is a leader in the North American contract manufacturing and private label bleach markets, with an unrivaled manufacturing and distribution footprint. Providing sale-leaseback financing on the most critical elements of this footprint yielded an interesting opportunity to invest in such an industry leader, irrespective of the current macro and capital market environment. We are delighted KIK and CI Capital Partners chose to work with AG Net Lease on this transaction."

"In the today's credit market, companies and sponsors are increasingly turning to sale-leaseback transactions to improve their balance sheets," said Gordon J. Whiting, Founder and Chief Portfolio Manager of AG Net Lease. "Angelo, Gordon's deep experience in the leverage credit markets, coupled with its leadership in the real estate private equity space, enables AG Net Lease to underwrite the most complex of opportunities in a highly reliable and timely manner."

Steve Lefkowitz, President of CI Capital Partners, said, "The sale-leaseback with AG Net Lease provided KIK with valuable capital to support its aggressive growth initiatives. This is the third time we have had the pleasure of working with Gordon and Teddy and we look forward to working with the team at AG Net Lease again."

About Angelo, Gordon & Co. and AG Net Lease

Angelo, Gordon & Co. was founded in 1988 and, with its affiliates, has approximately $20 billion under management. Currently, the firm's investment disciplines encompass four principal areas: (i) distressed debt and leveraged loans, (ii) real estate, (iii) private equity and special situations and (iv) a number of hedge fund strategies. Angelo, Gordon & Co. employs 111 investment professionals and is headquartered in New York, with associated offices in London, Los Angeles, Chicago, Boston, Hong Kong, Seoul, Shanghai, Singapore, Tokyo and Amsterdam.

AG Net Lease is comprised of a team of experienced professionals committed to providing sale-leaseback financing to financial sponsors and their portfolio companies across a range of industries. AG Net Lease is actively providing sale-leaseback financing and purchasing net leased corporate real estate in the U.S. and abroad in transactions ranging from $5 million to $300 million. We believe AG Net Lease's unparalleled credit and real estate underwriting expertise, coupled with its unique funding platform, ensures highly competitive pricing and speed of execution to tenants and sponsors. Additional information on AG Net Lease can be found at

About CI Capital Partners

CI Capital Partners (formerly Caxton-Iseman Capital) is a leading private equity investment firm specializing in leveraged buyouts of middle-market companies located primarily in North America. The firm was founded in 1993 to invest private capital on behalf of Caxton Associates, a New York investment management firm. CI Capital Partners heritage has shaped a unique culture built around long-term equity investments and high integrity.

Since its inception, the firm's investment activities have been managed by Frederick Iseman and Steven Lefkowitz who have invested together for 15 years. The CI Capital senior investment professionals consist of Messrs. Iseman and Lefkowitz, Timothy Hall, Thomas Ritchie, and Joost Thesseling who have worked together as a team for a combined 49 years at CI Capital.

About KIK Custom Products

With 21 manufacturing facilities strategically located throughout North America, KCP Holdings Inc. (operating as KIK Custom Products) is one of North America's largest custom manufacturers of both National Brand and Retailer Brand consumer products. KCP's product lines include Laundry, Household Cleaners, OTC Medicated, Pharmaceutical and Health & Beauty Care, all supported by KCP's in-house technical expertise and value-added services.

KCP produces leading National Brand products for Fortune 500 companies including Gillette, Johnson & Johnson, L'Oreal, Procter & Gamble, Unilever, Dial, Colgate-Palmolive, SC Johnson, Pfizer and 3M, and Retailer Brand products for top retailers including Albertsons, Kroger, Loblaws, Safeway, Target, Wal-Mart, Walgreens, and foodservice leader Sysco.

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Alex J. Stockham
Angelo, Gordon & Co.
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