Harris Williams & Co. Advises Idaho Pacific Holdings, Inc. in its Sale to Novacap Industries III, LP

May 11, 2011

Harris Williams & Co. announces the sale of Idaho Pacific Holdings, Inc. (IPH), a subsidiary of Otter Tail Corporation, to Novacap Industries III, LP (Novacap). The transaction closed on May 6, 2011. Harris Williams & Co. acted as the lead advisor to IPH. The transaction was led by Tim Alexander, Glenn Gurtcheff, Jeff Cleveland and Brant Cash from the firm's Consumer Group in Minneapolis.

"IPH is an industry leader serving blue-chip customers across the ingredient, foodservice, and export markets. The company's broad product offering and operations that span multiple potato growing regions provide unmatched stability and a strong platform for growth," said Tim Alexander, managing director at Harris Williams & Co.

"IPH is an industry leader with a skilled and experienced management team," said Domenic Mancini, general partner at Novacap. "The Company is known for the quality of its products and of its customer service. With the successful track record of IPH, Novacap is excited to partner with the company's management team and support them in realizing the full potential of IPH's growth strategies."

"We continue to see strong M&A deal flow in the food and beverage market, with both strategic and financial buyers attracted to the solid fundamentals and long-term growth dynamics of the sector," added Glenn Gurtcheff, managing director and head of Harris Williams &Co.'s Consumer Group.

IPH specializes in the manufacture of dehydrated potato products for use as ingredients in the industrial food and baking industries as well as a full line of dehydrated potato products for the foodservice industry. IPH is recognized as one of the premier potato dehydration companies in the industry. IPH is headquartered in Ririe, ID and operates production facilities in Idaho, CO, and Prince Edward Island.

Otter Tail Corporation has interests in diversified operations that include an electric utility, manufacturing, health services, food ingredient processing, and infrastructure businesses, which include plastics, construction, and transportation. Otter Tail Corporation stock trades on the NASDAQ Global Select Market under the symbol OTTR.

Novacap is a leading private equity group that was established in 1981. Novacap manages over $750 million in capital. Its mission is to build world class companies that can dominate a market niche and compete successfully anywhere in the world.