animal health

PSP Buys Minority Interest in Allflex

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The Public Sector Pension Investment Board – one of Canada’s largest pension investment managers – has acquired a significant minority interest in Allflex Group from BC Partners. BC Partners acquired Allflex from London-based Electra Partners for $1.3 billion in May 2013.

Allflex designs, manufactures and sells livestock species and companion animal identification and monitoring products (“animal intelligence products”) such as radio-frequency identification (RFID) and visual ear tags, tissue sampling devices, RFID implants, monitoring devices, and milk meters. Customers of Allflex include farmers, regulatory bodies, livestock industries, aquaculture, and pet owners. Allflex is led by CEO Jacques Martin and has approximately 1,700 employees. The company was founded in 1955 in New Zealand and today is headquartered in Vitré, France (www.allflex-group.com).

“Allflex is a high-quality, fast-growing industry leader with a unique market position. We are delighted to invest in the group, as part of PSP Investments’ increasing presence in the European private equity market,” said Guthrie Stewart, Senior Vice President and Global Head of PSP Private Investments. “We look forward to working with BC Partners and supporting Allflex’s management team as it enhances its global leadership in animal intelligence.” BC Partners remains the controlling shareholder in Allflex.

PSP Investments is one of Canada’s largest pension investment managers with C$112 billion of assets under management. PSP has been investing in private equity since 2004 and has approximately C$10 billion of private equity assets under management. PSP manages pension investments for the Federal Public Service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force. PSP has offices in Ottawa, Montreal, and New York (www.investpsp.ca).

“Allflex has performed extremely well and we are delighted to be supported by PSP Investments in order to continue the company’s fantastic growth story. Demand for animal intelligence products and solutions is increasing worldwide and we are confident that Allflex is ideally positioned to continue to lead the space and expand into new markets,” said Jean-Baptiste Wautier, Managing Partner, BC Partners.

BC Partners has €12 billion of capital under management and invests in companies in a variety of sectors. The firm was founded in 1986 and has offices in London, Paris, Hamburg and New York (www.bcpartners.com).

© 2016 Private Equity Professional • 6-14-16

North Bridge Exits SmartPak

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Henry Schein Animal Health, a division of Henry Schein, a provider of health care products and services to office-based dental, animal health and medical practitioners, has agreed to acquire a 60 percent ownership position in SmartPak, a provider of equine supplements and horse supplies, and a portfolio company of North Bridge Growth Equity. Oak Hill Capital Partners and the management team of  SmartPak will own the remaining equity of SmartPak.

SmartPak provides equine supplements in customized daily dose packaging.  The company offers over 250 branded equine supplements, including SmartSupplements, its own proprietary brand.  SmartPak also offers a range of equestrian supplies and accessories, including apparel and riding equipment, pharmaceuticals and other equine and canine focused products.   SmartPak had sales in 2013 of approximately $105 million.  The company was founded in 1999 and is headquartered in Plymouth, MA (www.smartpakequine.com).

“We are delighted to be partnering with Henry Schein Animal Health.  Having successfully invested in this sector and worked with the Henry Schein team in the past, we are excited about this opportunity to help SmartPak realize its vision for expanding access to its unique product offering,” said Steven Gruber, a Managing Partner of Oak Hill Capital Partners.

Henry Schein Animal Health is a one of the largest companion animal health distribution companies in the United States.  Products include dentistry, diagnostics, diets, equipment and supplies, nutraceuticals, orthopedics, parasiticides, and pharmaceuticals.  The company employs approximately 900 team members, including 300 field sales representatives and 200 telesales and customer support representatives. With 13 state-of-the-art distribution facilities and 10 inside sales centers, the company maintains a greater than a 99 percent order-fill ratio.  Henry Schein holds approximately a 75 percent ownership share in Henry Schein Animal Health.  The Ashkin family and certain members of the Henry Schein Animal Health management team own the company’s remaining equity.  Henry Schein Animal Health is based in Dublin, OH (www.henryscheinvet.com).

“We are fortunate to be acquiring a majority ownership position in a fast-growing company with a deep commitment to equine health and keen expertise in sales and digital marketing to those who care for horses,” said Stanley Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein.  “The SmartPak team, led by Paal Gisholt, is highly capable and has established an enviable position in the equine market.  We look forward to working together and welcoming our ‘SmartPaker’ colleagues to Team Schein.”

Oak Hill Capital Partners has $8 billion of committed capital and invests in the following sectors six sectors: basic industries; business and financial services; consumer, retail & distribution; healthcare; media & telecom; and technology. Over the past 25 years, the professionals at Oak Hill Capital Partners and its predecessors have invested in more than 70 private equity transactions. The firm is located in Stamford, CT (www.oakhillcapital.com).

Henry Schein (NASDAQ: HSIC) is a global distributor of products and services to veterinarians.  In addition to Henry Schein’s U.S. Animal Health business, the company is a distributor to veterinary customers in Australia and New Zealand, as well as in 12 European countries, including Austria, Belgium, the Czech Republic, France, Germany, Holland, Ireland, Poland, Portugal, Spain, Switzerland and the United Kingdom. In 2013, Henry Schein’s Global Animal Health business had sales of approximately $2.6 billion.  The company is headquartered in Melville, NY (www.henryschein.com).

North Bridge Growth Equity invests from $15 million to $75 million as either a minority or majority investor in rapidly growing companies that have $15 million to $300 million in annualized revenue. North Bridge Growth Equity is led by a team of four general partners – Matt Blodgett, Doug Kingsley, Mike Pehl and Russ Pyle – together they have 70 years of combined operational and investment experience. Combined with five Principals and eight Associates, the team looks to make growth equity investments in growth companies in technology and technology-enabled industries. The firm has offices in Palo Alto, CA and Waltham, MA (www.nbvp.com).

© 2014 PEPD • Private Equity’s Leading News Magazine • 5-22-14

DW Healthcare Partners Invests in Med-Pharmex

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DW Healthcare Partners has made an investment in Med-Pharmex, a provider of animal health products.

Med-Pharmex offers pharmaceutical research, formulation, and manufacturing in the animal health industry. Med-Pharmex’s veterinary pharmaceuticals include products for companion animals, such as dogs, cats, and horses, and food-producing animals, such as cattle, swine and poultry. The company operates three manufacturing facilities and is headquartered in Pomona, CA (www.med-pharmex.com).

“We are very pleased to have this opportunity to partner with Gerald Macedo and his talented team at Med-Pharmex. The company is uniquely positioned within the animal health market. It will provide us with a stable platform that can be further leveraged as new products are added to the portfolio, via internal research and development, product acquisitions, and strategic manufacturing partnerships,” said Andrew Carragher, Co-founder and Managing Director of DW Healthcare Partners.

DW Healthcare Partners is a private equity firm focused exclusively on the healthcare industry. The firm manages over $500 million in committed capital and invests in profitable healthcare companies with proven management teams. DW Healthcare Partners is currently seeking investment opportunities for its third fund which has $265 million of committed capital. The firm is based in Park City, UT (www.dwhp.com).

“Our partnership with DW Healthcare Partners will allow us to take advantage of some exciting growth opportunities,” said Gerald Macedo, CEO of Med-Pharmex. “The financial stability and flexibility now available to us through this investment in our company will enable us to move forward with our acquisition and product development plans.”

© 2013 PEPD • Private Equity’s Leading News Magazine • 5-2-13