H.I.G. Growth Partners News
Capstone Nutrition and MusclePharm Sign Strategic Supply Agreements
Accords provide MusclePharm with industry-leading quality manufacturing
OGDEN, UT – March 4, 2014 – Capstone Nutrition (“Capstone”), a leading turnkey developer and manufacturer of high quality nutrition and OTC products and MusclePharm Corporation (“MusclePharm”) (OTCQB: MSLP), a scientifically driven, performance-lifestyle sports nutrition company, announced today the signing of a set of multi-year strategic supply agreements between the two companies. The agreements provide MusclePharm long term access to Capstone’s extensive high quality development and manufacturing services, expand the production capacity at Capstone to meet additional requirements, and provide MusclePharm with certain warrants and options.
“MusclePharm has long been one of our fastest growing customers, and we are thrilled to expand our relationship to help fuel their future growth and innovation,” said Greg Horn, CEO of Capstone. “Their vote of confidence in Capstone as their long term primary supplier is a validation of our commitment to quality, and of our strategy to work closely as partners with our customers.”
“MusclePharm and Capstone have had a long term relationship since MusclePharm’s founding,” said Brad Pyatt, CEO and Founder of MusclePharm. “With more than two decades of experience manufacturing high-quality products, Capstone is the ideal partner for MusclePharm.” Richard Estalella, President of MusclePharm added, “These agreements bring MusclePharm advantages in quality and innovation and dual supply in both the eastern and western U.S. while providing us with many of the advantages of vertical integration.” The initial term of the agreement is 7 years, and MusclePharm has committed to produce a minimum of $90 million of its powder and capsule business with Capstone each year after a scale-up period during 2015.
The agreements enhance a capacity expansion program at Capstone’s state-of-the-art manufacturing facilities in Ogden, UT and in Spring Hill, TN that was already underway. As part of the agreements, MusclePharm will pay $2.5 million in capital for specific capacity expansion at both facilities. This additional capacity will ensure that Capstone can continue growing with all of its customers while delivering the additional business volume for MusclePharm. “We expect that the expanded capacity, capabilities and buying power represented by the additional MusclePharm business will have advantages across our entire customer base.” said Peter Miller, Capstone’s Chief Innovation Officer.
About Capstone Nutrition
Capstone Nutrition is the leading pure-play, turnkey developer and manufacturer of high quality nutrition and OTC products. Capstone is a one-stop shop for innovators in nutrition, bringing to bear the consolidated resources of Integrity Nutraceuticals and Cornerstone Research and Development with state-of-the-art facilities in both Spring Hill, TN and Ogden, UT. Since 1992, Capstone companies have been conceiving, developing, producing, and packaging a wide range of capsule, tablet, powder and OTC products for a variety of customers in the United States and internationally. Capstone is well known for its exceptional quality, and maintains several industry certifications recognizing its high manufacturing standards, including NSF GMP, NSF for Sport, and Australia’s Therapeutic Goods Administration (“TGA”) certification. For more information, please visit www.CapstoneNutrition.com.
MusclePharm® is a scientifically-driven, performance lifestyle company that currently develops, manufactures, markets and distributes branded nutritional supplements. The company offers a complete range of powders, capsules, tablets and gels. Its portfolio of recognized brands, including MusclePharm® Hybrid and Core Series, Arnold Schwarzenegger Series™ and FitMiss™, are marketed and sold in more than 110 countries and available in over 35,000 retail outlets globally. These clinically-proven and scientific nutritional supplements are developed through a six-stage research process utilizing the expertise of leading nutritional scientists, doctors and universities. MusclePharm is the innovator of the sports nutrition industry. For more information, visit www.musclepharm.com.