New Water Capital has sold Trillium Health Care Products, a contract development and manufacturing organization (CDMO), to Avista Healthcare Partners.
Trillium is a short and medium production run contract manufacturer and formulator of prescription and over-the-counter products in solid, semi-solid, and liquid dosage forms. The company’s product categories include gastrointestinal remedies, cough and cold medications, antiseptic ointments, suppositories, nasal sprays, allergy relief products, analgesics, and sleep aids. Trillium has more than 300 employees and is headquartered 130 miles southwest of Montreal in Brockville, Ontario.
New Water acquired Trillium in August 2018 through its $406 million inaugural fund. “New Water has been a transformational partner for Trillium,” said Joe Ruffo, the CEO of Trillium. “The support and significant investment New Water provided Trillium has set us apart from our competition. We see significant market opportunities and are excited for our next phase of growth with Avista, a growth-oriented partner with sector expertise in consumer healthcare.”
“New Water worked with management over our investment period to transform Trillium into a best-in-class, full-service CDMO with an outstanding reputation in the industry,” said Jason Neimark, a managing partner at New Water. “We appreciate all the hard work and investment by the New Water and Trillium teams to position Trillium for rapid future growth.”
“Our acquisition of Trillium represents another exciting investment for Avista in the attractive consumer healthcare sector,” said Alex Yu, a partner at Avista. “Trillium is a best-in-class, full-service CDMO with an outstanding reputation in the industry. We had been tracking Trillium for a number of years prior to this acquisition and are delighted to finally partner with Joe and the rest of the Trillium management team to help drive the next phase of the company’s growth.”
Earlier this week, Avista announced a rebranding of the firm from Avista Capital Partners to Avista Healthcare Partners to better reflect the firm’s transition from a generalist fund to a specialized healthcare-focused fund more than a decade ago. Avista has raised three dedicated healthcare funds that invest in high-growth middle-market product and technology healthcare companies located in both North America and Europe. Avista’s most recent fund, Avista Healthcare Partners III LP (Fund III), closed above target in February 2024 with $1.5 billion of capital commitments.
“I am proud of the strong reputation we have built within the healthcare landscape, and we are excited to formally align our firm’s name with our investment focus and identity,” said David Burgstahler, the CEO of Avista. “Avista has consistently delivered top-tier performance in the healthcare sector, and our team has exited 33 of our investments delivering $12.2 billion of proceeds on $4.2 billion of invested capital representing a 2.9x gross MOIC and 29% gross IRR. The rebrand crystallizes our market position and reinforces our commitment to our strategy.”
“Trillium’s strong culture and expertise, dedication to quality, and diversified blue-chip customer base form an excellent foundation for Avista and the Trillium management team as they enter the next chapter of the company’s growth,” said Nathan Douglas, a vice president at New Water.
New Water invests in lower middle-market companies with revenues between $30 million and $300 million that are active in the consumer, retail and industrial manufacturing and services sectors. The firm was founded in September 2014 and is based in Boca Raton, Florida.
The acquisition of Trillium is the sixth investment for Avista’s Fund III and follows the February purchase of Terrats Medical, a Barcelona-based manufacturer of dental prosthetics, from Miura Partners.
Avista makes control or influential minority investments in growth-oriented healthcare businesses with specific interests in outsourced pharma and medtech services; consumer healthcare; medical devices; specialty and generic pharmaceuticals; distribution and diagnostics; and healthcare technology. The firm was founded in 2005 and is headquartered in New York City.
Piper Sandler & Co. was the financial advisor to Trillium on this transaction.
© 2024 Private Equity Professional | August 9, 2024
