Webster Partners Up for Belmar Buy

Webster Equity Partners and MedEquity Capital have acquired Belmar Pharmacies, a compounding business that specializes in bio-identical hormone replacement therapy (BHRT) and other hormone-based wellness products.

Compounding pharmacies combine, mix, or alter one or more ingredients to create a medication that is tailored to the needs of an individual patient. Belmar operates both 503A and 503B compounding facilities. 503A facilities are traditional compounding pharmacies that produce a product in accordance with patient-specific prescriptions and are required by the state boards of pharmacy to comply with the USP (United States Pharmacopeia) and its guidelines. On the other hand, 503B facilities produce large batches of products, with or without prescriptions, that are sold to healthcare facilities.

Belmar services more than 6,500 providers and more than 64,000 patients annually across 46 states. The company, led by CEO Dave Hill, was founded in 1985 and is headquartered in Golden, CO (www.belmarpharmacy.com).

Both Webster and MedEquity have committed to providing additional capital to back an add-on acquisition strategy at Belmar. “We chose to partner with Webster and MedEquity because they shared my vision of growing Belmar to become the leader in our sector,” said Mr. Hill. “Their teams bring both the wherewithal and experience in specialty pharmacy to make that vision a reality.”

“We are excited to partner with Dave Hill and his team to assist them in continuing to grow Belmar while maintaining the central focus on providing excellent service to its clients,” said David Malm, a managing partner at Webster Equity. “There is a tremendous opportunity to expand access to these services, and we look forward to helping Belmar close that gap.”

Webster invests in branded consumer and healthcare services companies with EBITDAs from $3 million to $15 million and transaction values from $15 million to $200 million. In August 2018 the firm held a final and oversubscribed closing of Webster Capital IV LP at its hard cap of $875 million. Webster Capital was founded in 2003 and is based in the Boston suburb of Waltham (www.webstercapital.com).

MedEquity Capital, which has co-invested with Webster before, invests in healthcare services, distribution and products companies that have revenues of $1.5 million to $20 million and EBITDA of $0.5 million to $4 million.  MedEquity is based west of Boston in Wellesley Hills, MA (www.medequity.com).

© 2019 Private Equity Professional | May 31, 2019

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