Ancor Capital Partners and Sentinel Capital Partners have sold WellSpring Pharma Services to publicly-traded ANI Pharmaceuticals for $18 million in cash.
Ancor and Sentinel acquired Sarasota, FL-based WellSpring Pharmaceutical in November 2011. At that time, 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. The prescription drug business was sold in 2014 and the consumer healthcare division was sold in 2017. This transaction represents the sale of the contract manufacturing operation, the final WellSpring business segment.
WellSpring Pharma Services (WPS) is a pharmaceutical contract manufacturer of nonsterile finished dosage form products, including solids, semisolids, and oral liquids and suspensions. The company also provides primary and secondary packaging as part of its services. WPS has annual revenues of $15 million to $20 million.
WPS, led by CEO Wendy Shusko, has a 101,000 sq. ft. manufacturing facility located near Toronto in Oakville, ON (www.wellspringcmo.com).
“We are extremely pleased with our WellSpring business investment,” said Randall Keene, a founding partner at Ancor. “On our watch, the operation was able to advance its position as a market leader and has emerged into a powerful platform poised for continued and sustainable growth.”
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, healthcare, consumer staples, and outsourcing. The firm is headquartered in the Dallas suburb of Southlake, TX (www.ancorcapital.com).
“Along with our outstanding partners on this deal, Sentinel, and the leadership of WellSpring CEO Wendy Shusko, we have been able to achieve a number of key strategic initiatives over the course of this investment. I am confident the company’s talented management team and state-of-the-art facilities will continue to drive them toward new opportunities in the industry,” added Mr. Keene.
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, and industrials. The firm is headquartered in New York (www.sentinelpartners.com).
ANI Pharmaceuticals (NASDAQ: ANIP), the buyer of WPS, is a specialty pharmaceutical company that develops and manufactures liquid, powder and oral solid dose products. ANI also provides contract manufacturing services for other pharmaceutical companies. The company has a combined manufacturing, packaging and lab capacity of approximately 170,000 sq. ft. and is headquartered in Baudette, MN (www.anipharmaceuticals.com).
© 2018 Private Equity Professional | August 17, 2018
