Global private equity firm The Carlyle Group today announced that
along with private equity firm J.H. Whitney & Co., a group of existing
investors that include Manti Resources, Inc., and Authentix´ existing
management team, it has acquired Authentix, Inc., a company that
develops and delivers an array of authentication and brand protection
solutions in the banknote, consumer, medical device, oil and gas and
pharmaceutical industries, as well as excise tax recovery solutions
for national and state governments. The transaction closed on April
18, 2008. Financial terms were not disclosed.
A pioneer in the rapidly growing authentication industry
Authentix develops nanoscale-engineered markers, opto-electronic and
nanophotonic detection devices and software that help its clients
ensure the authenticity, integrity and safety of their products. Over
the past five years, Authentix has recovered more than $5 billion in
lost revenues for its clients, which include Fortune 500 companies and
national governments. Authentix currently provides authentication
services in 18 countries on five continents.
"Focused on industries that are most susceptible to losses from
the counterfeiting of their products, Authentix will continue to
capitalize on the authentication market, which is projected to triple
by 2011," said Steve Bailey, Managing Director, The Carlyle Group. "We
are excited to work with Authentix´ seasoned management team and
talented employee base and to continue to invest in research and
development at a rate commensurate to the growing concern about the
rise of counterfeiting, smuggling and grey market diversion."
"This transaction will enable Authentix to tap into Carlyle´s
global network and expertise and significantly strengthen our
international business development activities," said David Moxam
Chairman and CEO, Authentix. "Additionally, we are excited to extend
our capital base and accelerate our acquisition strategy to better
serve our existing and future clients across all industries. As the
dynamics of global counterfeiting continue to evolve, this investment
affirms our commitment to the use of advanced and innovative
nanotechnology, device and software platforms for brand integrity and
excise tax collection programs."
"Authentix´ unique portfolio of technologies and its
solutions-based approach has ensured the company is a trusted partner
to corporations and governments around the world," said Carlyle Senior
Advisor, Charles Rossotti, who from 1997 to 2002 served as
Commissioner of Internal Revenue Service. "In particular, Authentix´
Excise Tax Recovery Programs provide government authorities with the
ability to effectively authenticate and track goods to ensure tax
revenues are optimized rather than lost altogether, a major problem
for example, in tobacco and oil and gas industries. I look forward to
working with the Authentix team to further expand the company´s global
client base."
MHT Securities, a wholly owned subsidiary of MHT Partners, which
focuses on merger and acquisition advisory for tech-enabled growth
companies, was the exclusive advisor to Authentix in this transaction.
Authentix´ solutions are built upon three key components:
authentication, recognition and data management. Depending on a
particular client´s needs, products are marked with authenticating
forensic features that range from nanoscale markers embedded in
packaging materials to molecular markers that can be incorporated into
the product itself (ranging from fuels to pharmaceuticals). Authentix
develops a wide range of opto-electronic devices that are used to test
for these proprietary markers. These devices recognize the in-product
and on-package markers determining if the product is authentic
counterfeit or diluted. Data retrieved from product sampling via
Authentix´ opto-electronic devices can be aggregated and used to
create real-time reports for clients. This authentication and tracking
data, for example, highlights geographical problem domains, identifies
compromises in supply chain integrity, etc. This valuable information
and analyses enable clients to take appropriate remedial action.
About The Carlyle Group
The Carlyle Group is a global private equity firm with $81.1
billion under management committed to 60 funds. Carlyle invests in
buyouts, venture & growth capital, real estate and leveraged finance
in Africa, Asia, Australia, Europe, North America and South America
focusing on aerospace & defense, automotive & transportation, consumer
& retail, energy & power, financial services, healthcare, industrial
infrastructure, technology & business services and telecommunications
& media. Since 1987, the firm has invested $43.0 billion of equity in
774 transactions for a total purchase price of $229.3 billion. The
Carlyle Group employs more than 1,009 people in 21 countries. In the
aggregate, Carlyle portfolio companies have more than $87 billion in
revenue and employ more than 286,000 people around the world.
www.carlyle.com
About J.H. Whitney & Co.
J.H. Whitney & Co., established in 1946, was one of the first U.S.
private equity firms pioneering the development of the private equity
industry. Today, J.H. Whitney remains privately owned and its main
activity is to provide private equity capital for small and middle
market companies. J.H. Whitney is currently investing its sixth
private equity fund, J.H. Whitney VI, L.P., for major endowments
foundations, pension plans, and high net-worth families. Investment
activities are focused on small and middle market buyouts of market
leading companies that are poised for growth in a number of industries
including consumer products and retail, healthcare services, specialty
manufacturing and business services.
About Manti
Manti is a privately held energy company that invests primarily in
the energy sector through its subsidiaries Manti Exploration (Oil and
Gas Exploration and Production), Magnus Energy Marketing (Gas
Wholesale Trading). Manti is also active in the high technology sector
with controlling interests in Cimex Medical Innovations (Biomedical
Devices), and ImmunoBiosciences (Vaccine Technology).
Headquartered in Corpus Christi, Texas, Manti has subsidiary
offices located throughout the U.S. including Houston, TX, Dallas, TX
Lafayette, LA, New Orleans, LA, Denver, CO and Tulsa, OK. The key to
Manti´s success has been actualizing high yield, high risk
opportunities by hiring the best and allowing them to participate in
the value they create. Another core value is supporting community
initiatives which inspire and support disadvantaged groups through its
nonprofit affiliate company, FutureUS.
About Authentix
As the global leader in authentication solutions for brand
protection and excise tax recovery, Authentix(R) is on the frontlines
of the battle against counterfeiting and smuggling. Authentix offers a
wide array of world-class solutions that are based on innovative
nano-scale engineering and mass serialization so that brand integrity
can be preserved as products move through the supply chain. Authentix´
solutions safeguard consumers from harmful products and prevent
profits and tax revenues from being lost to illegal activities, such
as terrorism. With clients including Fortune 500 companies and
national governments, Authentix has recovered over $5 billion in lost
revenues in the oil and gas, pharmaceutical and medical device
tobacco, spirits, and consumer goods industries. In addition, our
expertise in the fields of value documents, currency and homeland
security applications helps protect the very fabric of our society.
www.authentix.com
This press release may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
with respect to our financial results, results of operations, and
business. All statements, other than statements of historical fact
are forward-looking statements. Any expectations based on
forward-looking statements are subject to significant risk and
uncertainties and actual results could differ materially from
expectations based on such forward-looking statements. You should
therefore not rely on these forward-looking statements. We undertake
no obligation to update or revise any forward-looking statement.
