Audax Private Equity has acquired WellSpring Consumer Healthcare from Sentinel Capital Partners and Ancor Capital Partners. Sentinel and Ancor acquired Wellspring in November 2011 from the company’s founder, Dr. Robert Vukovich.
WellSpring Consumer Healthcare is a marketer of over-the-counter and cosmetic brands in the skin care, feminine hygiene, and gastrointestinal care categories. The company’s portfolio of brands, many of which occupy the #1 or #2 positions in their market segments, includes Bactine, Bonine, FDS, Emetrol, Micatin, Gelusil, Glaxal Base, Barriere, and K-Lyte. All of these brands are widely distributed across the food, drug, mass, and club retail channels in the United States and Canada. WellSpring was founded in April 1999 and is headquartered in Sarasota, FL (www.wellspringpharm.com).
Wellspring’s sister company, WellSpring Pharma Services, is a pharmaceutical contract manufacturer which has an FDA and Health Canada registered and inspected manufacturing plant in Oakville, ON. Following the sale of WellSpring, Sentinel and Ancor will continue to own this contract manufacturing business.
“WellSpring owns iconic brands with strong leadership positions,” said John Van Sickle, a Partner at Sentinel. “WellSpring’s over-the-counter business is a proven platform with a compelling financial profile and a meaningful runway for future growth. Moreover, a fertile M&A environment has produced a large supply of high quality, actionable add-on acquisitions.”
At the outset of Sentinel’s and Ancor’s 2011 investment in WellSpring, the company consisted of three divisions; a consumer portfolio of over-the-counter health and personal care products; a portfolio of specialty prescription drugs; and a contract manufacturer of pharmaceutical products. During the ownership term, WellSpring narrowed its focus by divesting its prescription drugs portfolio and bolstered its market position by completing three over-the-counter add-on acquisitions for its consumer healthcare portfolio. In December 2015, WellSpring acquired Bactine, the iconic first aid antiseptic brand that has been sold since 1950, from Bayer HealthCare. Also in December 2015, Wellspring acquired FDS, a feminine hygiene brand, from Inspired Beauty Brands; and in September 2014 the company acquired Bonine, an over-the-counter drug for motion sickness, from Prestige Brands.
“The entire consumer healthcare team is very excited to be partnering with Audax for the next stage of our growth. Audax brings substantial expertise and resources that we anticipate will continue to accelerate our strategic acquisition strategy,” said WellSpring’s President and CEO John Dowers.
“WellSpring is a leader in the health and beauty care industry,” said Geoffrey Rehnert, Co-Chief Executive Officer, Audax Group. “We look forward to working with John Dowers and the WellSpring team to continue building a leading platform through organic growth and add-on acquisitions.”
Audax Group makes control investments of $10 million to $100 million in middle market companies with transaction values of $25 million to $500 million. Sectors of interest include industrial manufacturing; energy; outsourced industrial services; consumer products; healthcare devices and services; non-asset based logistics; technology; aerospace & defense; business services; and direct marketing. The firm was founded in 1999 and has offices in Boston, New York and Menlo Park (www.audaxgroup.com).
Sentinel Capital Partners invests in management buyouts, recapitalizations, corporate divestitures, and going-private transactions of businesses with EBITDAs up to $65 million. Sentinel targets eight industry sectors: aerospace & defense, business services, consumer, distribution, food & restaurants, franchising, healthcare services, and industrials. The firm is headquartered in New York (www.sentinelpartners.com).
Ancor Capital Partners invests in companies with enterprise values of $25 million to $150 million that have EBITDAs from $5 million to $15 million. Sectors of interest include manufacturing, distribution, health care, consumer staples, and outsourcing. The firm is headquartered in the Dallas suburb of Southlake, TX (www.ancorcapital.com).
Investment bank Sawaya Segalas & Co. (www.sawayasegalas.com), which assisted WellSpring with its over-the-counter acquisition strategy, was the lead advisor to WellSpring with Houlihan Lokey (www.HL.com) serving as co-advisor.
Ropes & Gray (www.ropesgray.com) was the legal advisor to Audax on this transaction. The Ropes & Gray team was led by private equity partner Kendrick Chow, private equity associate Adam Leamon and finance counsel Kevin Jarboe.
© 2017 Private Equity Professional | September 28, 2017
