Pharmaceuticals

RoundTable Hits 5x on Sale

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RoundTable Healthcare Partners has completed the sale of the topical pharmaceutical business of its portfolio company Renaissance Acquisition Holdings to pharmaceutical company Mylan NV for $950 million in cash plus up to an additional $50 million in contingent payments.

“Renaissance is another example of RoundTable partnering with owner/founders to accelerate revenue and earnings growth in order to create a strategically valuable platform company,” said Lester Knight, Founding Partner of RoundTable.  “This transaction marks the first portfolio company sale from RoundTable’s $600 million Fund III, generating a return of more than five times invested equity capital for our investors.”

The topical division of Renaissance develops, manufactures, markets and sells branded and generic topical pharmaceutical products.  RoundTable founded Renaissance in 2010 when it acquired two contract manufacturing and development companies – Confab Laboratories based in Montreal, and DPT Laboratories based in San Antonio. Renaissance will continue to own and operate its sterile-focused specialty pharmaceutical business with development and manufacturing facilities in Lakewood, NJ (www.dptlabs.com) (www.confab.com).

As part of this transaction, Renaissance will continue to own and operate its sterile-focused specialty pharmaceutical business with development and manufacturing facilities in Lakewood, NJ.

RoundTable Healthcare Partners is an operating-oriented private equity firm focused exclusively on the healthcare industry.  RoundTable has raised $2.75 billion in committed capital, including four equity funds totaling $2.15 billion and three subordinated debt funds totaling $600 million. The firm was founded in 2001 and is headquartered north of Chicago in Lake Forest, IL (www.roundtablehp.com).

“On behalf of RoundTable and our investors, I would like to thank the outstanding management team and dedicated employees of Renaissance for creating a leading specialty pharmaceutical company,” said Pierre Frechette, Senior Operating Partner at RoundTable and the Chairman of the Board of Renaissance.  “We believe Mylan is an excellent strategic partner for this business, its employees and customers going forward.”

Mylan (NASDAQ:MYL) is a generic and specialty pharmaceuticals company headquartered north of London in Hatfield, UK (www.mylan.com).

Deutsche Bank (www.db.com) was the financial advisor to Renaissance.  Sidley Austin (www.sidley.com) acted as lead legal counsel to RoundTable.

© 2016 Private Equity Professional • 6-16-16

RoundTable Sells Topical Pharma Division

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RoundTable Healthcare Partners has sold the topical pharmaceutical business of its portfolio company Renaissance Acquisition Holdings to pharmaceutical company Mylan NV for $950 million in cash at closing plus up to an additional $50 million in contingent payments.

The topical division of Renaissance develops, manufactures, markets and sells branded and generic topical pharmaceutical products.  RoundTable founded Renaissance in 2010 when it acquired two contract manufacturing and development companies – Confab Laboratories based in Montreal, and DPT Laboratories based in San Antonio. Renaissance will continue to own and operate its sterile-focused specialty pharmaceutical business with development and manufacturing facilities in Lakewood, NJ (www.dptlabs.com) (www.confab.com).

“On behalf of RoundTable, I would like to thank the outstanding management team and dedicated employees of Renaissance for creating a leading specialty pharmaceutical company,” said Pierre Frechette, Senior Operating Partner at RoundTable and the Chairman of the Board of Renaissance.  “We believe Mylan is an excellent strategic partner for this business, its employees and customers going forward.”

RoundTable Healthcare Partners is an operating-oriented private equity firm focused exclusively on the healthcare industry.  RoundTable has raised $2.75 billion in committed capital, including four equity funds totaling $2.15 billion and three subordinated debt funds totaling $600 million. The firm was founded in 2001 and is headquartered north of Chicago in Lake Forest, IL (www.roundtablehp.com).

Mylan (NASDAQ:MYL) is a generic and specialty pharmaceuticals company headquartered north of London in Hatfield, UK (www.mylan.com).

Deutsche Bank (www.db.com) was the financial advisor to Renaissance.  Sidley Austin (www.sidley.com) acted as lead legal counsel to RoundTable.

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 5-17-16

TPG to Acquire Aptalis Pharmaceutical

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TPG and Actavis have entered in an agreement for TPG to acquire Aptalis Pharmaceutical Technologies (APT), a pharmaceutical outsourcing and R&D business.  APT is currently owned by Aptalis, an operating subsidiary of Actavis. The transaction is expected to close by mid-2015.

APT is a pharmaceutical R&D and manufacturing company with specialized capabilities in taste-masking and customized drug release. The company services include project support from formulation through scale-up and commercial-scale manufacturing (www.aptalispharmaceuticaltechnologies.com).

TPG intends to use APT as a platform to enter into new partnerships and make additional acquisitions in order to grow the business.  TPG’s healthcare practice has invested approximately $6 billion in equity since 2007, and the firm has executed more than 20 carve-outs from major corporations since its founding.  “We see great demand in the market for APT’s drug delivery and R&D expertise, and by launching this platform, we hope to continue to support the growth and innovation of pharmaceutical companies, both through the development of de novo products, novel value-added formulations and targeted generic products,” said John Schilling of TPG.

John Fraher, current president of APT, will become CEO of the new standalone company, and will be joined by others from his management team.  “We’re excited to renew our partnership with TPG, and believe the firm’s experience in the pharma industry, combined with their past successes in establishing market-leaders from carve-outs, positions us well  to build a new, successful platform,” said Mr. Fraher.

TPG is a private investment firm founded in 1992 that makes investments throughout North America, Europe, Asia and Australia.  Sectors of interest include industrials, retail, consumer, financial services, travel and entertainment, technology, media and communications, and healthcare.  The firm has offices in San Francisco, Fort Worth, Austin, Dallas, Houston, New York, Beijing, Hong Kong, London, Luxembourg, Melbourne, Moscow, Mumbai, São Paulo, Shanghai, Singapore and Tokyo (www.tpg.com).

Actavis (NYSE: ACT) is a specialty pharmaceutical company focused on developing, manufacturing and commercializing generic and branded pharmaceutical products. The company is based in Dublin, Ireland (www.actavis.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 2-13-15

DFW Exits Vidara Therapeutics

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DFW Capital Partners has completed the previously announced sale of its portfolio company, Vidara Therapeutics, to Horizon Pharma, in a cash and stock transaction valued at approximately $587 million. DFW invested in Vidara in 2012 through its third private equity fund, DFW Capital Partners III, LP.

Vidara is a specialty pharmaceutical developer and marketer, focused on rare disease and niche therapies in the orphan drug arena (www.vidararx.com).  DFW originally invested in Vidara in 2012, to support the company’s acquisition of Actimmune, a patented biologic injectable form of interferon gamma-1b, approved for the treatment of chronic granulomatous disease which is a genetic disorder that affects the functioning of some cells of the immune system; and for the treatment of patients with severe, malignant osteopetrosis, a genetic disorder that affects normal bone formation.

“We are thrilled with the outstanding operational and financial success that Vidara’s team has accomplished in a relatively short period, and are equally excited to achieve both a successful financial exit and go-forward affiliation with Horizon and its talented management team,” said Keith Pennell, DFW’s Managing Partner.

DFW Capital Partners invests in lower middle market companies. Sectors of interest include outsourced healthcare and business services, including clinical services, specialty distribution, automated dispensing and pharmacy technology. DFW is headquartered in Teaneck, NJ, and maintains an office in Chevy Chase, MD (www.dfwcapital.com).

Lazard Middle Market represented Vidara and its shareholders on this transaction.

2014 PEPD • Private Equity’s Leading News Magazine • 9-22-14

American Capital Exits Scientific Protein Laboratories

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American Capital has sold its portfolio company SPL Acquisition, parent company to Scientific Protein Laboratories , to Shenzhen Hepalink Pharmaceutical Co.

Scientific Protein Laboratories (SPL) is a manufacturer and supplier of active pharmaceutical ingredients with a focus on pancreatic enzymes and heparin.  SPL specializes in cGMP (Current Good Manufacturing Practice) biopharmaceutical manufacturing and is one of the largest commercial suppliers of Heparin Sodium USP, Pancreatin USP and Pancrelipase USP (USP refers to the US Pharmacopeial Convention, a scientific nonprofit organization that sets standards for the identity, strength, quality, and purity of medicines, food ingredients, and dietary supplements manufactured, distributed and consumed worldwide).  SPL serves the pharmaceutical, veterinary and food industries globally and is headquartered near Madison in Waunakee, WI (www.spl-pharma.com).

American Capital first invested in SPL in August 2006.  At that time, American Capital’s investment took the form of a revolving credit facility, a senior term loan, a senior second lien loan, senior and junior subordinated debt and equity.

American Capital and its affiliated funds received $291 million in debt and equity proceeds, including escrows and expected tax refunds, and realized a gain of $59 million from the transaction, subject to post-closing adjustments.  Of the total proceeds, American Capital received $210 million in debt and equity proceeds, including escrows and expected tax refunds, realizing a gain of $33 million from the transaction, subject to post-closing adjustments.

American Capital also recognized $33 million of dividend income over the life of its investment.  In addition to the proceeds received at closing, there are contingent earn-out payments in the amount of $211 million, which may be paid to American Capital and its affiliated funds upon SPL achieving specified milestones.  American Capital’s compounded annual rate of return earned on its debt and equity securities over the life of its investment was 15%, including interest, realized gains and fees.

“The success of the SPL investment is a result of its strong management team, leading market position and commitment to the safety and quality of its products,” said Kyle Bradford, American Capital Managing Director, Healthcare Group.  “We are proud of the company’s improvements and success over our investment period, which made it an attractive purchase for Hepalink.”

Shenzhen Hepalink Pharmaceutical Co. is one of the largest suppliers of heparin sodium in the world.  The company is headquartered in Shenzhen, China (www.hepalink.com/en).

“American Capital was able to contribute significantly to SPL’s growth and success over the last few years,” said Will Fletcher, American Capital Senior Associate.  “By using the resources of our investment, operations, legal and other staff teams, we helped SPL complete a notable acquisition, navigate through changing market conditions and resolve significant product quality challenges.”

American Capital (NASDAQ: ACAS) is a publicly traded private equity firm and asset manager that originates, underwrites and manages investments of $10 million to $750 million in middle market private equity, leveraged finance, real estate and structured products. Founded in 1986, American Capital has $93 billion in total assets under management and has eight offices in the US, Europe and Asia. The firm is headquartered in Bethesda (www.AmericanCapital.com).

“For more than seven years, American Capital partnered with us as we grew our business, developed new products and supported our valued customers,” said Robert Mills, SPL Chief Executive Officer.  “American Capital’s deep appreciation for SPL, our employees and customers and its understanding of our unique industry, products and complex regulatory requirements proved instrumental to SPL’s success.”

© 2014 PEPD • Private Equity’s Leading News Magazine • 4-21-14

GTCR Exits Actient

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GTCR has sold its portfolio company Actient Holdings to Auxilium Pharmaceuticals, a specialty biopharmaceutical company, for $585 million in cash plus contingent consideration of up to $50 million and warrants to purchase Auxilium common stock.

Actient is a specialty pharmaceutical company focused on developing, acquiring and marketing products used in the treatment of urological indications. Actient was formed in March 2009 in partnership with GTCR. Through a series of five acquisitions, Actient built a portfolio of commercial products and pipeline programs used in the urological treatment sector. The company is headquartered in Lake Forest, IL (www.actientpharma.com).

“Our partnership with Actient CEO Ed Fiorentino exemplifies GTCR’s Leaders Strategy,” said GTCR Managing Director Dean Mihas. “We created Actient with a strategy to build a leading specialty pharmaceutical company through the acquisition of companies and products. Through a series of transactions, Ed and the team have built a growing urology specialty company. The strategic acquisition of Actient by Auxilium is the culmination of this successful partnership and GTCR’s healthcare strategy.”

Auxilium Pharmaceuticals is a specialty biopharmaceutical company with a focus on developing and marketing products to predominantly specialist audiences. The company is based in Chesterbrook, PA (www.auxilium.com).

To finance the acquisition, Auxilium is using cash on hand and the proceeds from a new secured loan of $225 million from Morgan Stanley Senior Funding.

Jefferies served as Actient’s financial advisor and Kirkland & Ellis provided legal counsel.

GTCR pioneered the investment strategy of identifying and partnering with executives to acquire and build companies through a combination of acquisitions and internal growth. The firm currently has nearly $7 billion in assets under management. Since its inception in 1980, GTCR has invested more than $10 billion in over 200 companies. GTCR is based in Chicago (www.gtcr.com).

Aisling Capital Acquires Cypress Pharmaceuticals and Hawthorn Pharmaceuticals

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Pernix Therapeutics, a specialty pharmaceutical company and a portfolio company of Aisling Capital, has entered into an agreement to acquire privately-owned generic pharmaceutical companies Cypress Pharmaceuticals and Hawthorn Pharmaceuticals for $101 million.

Pernix has received a commitment from MidCap Financial for a $60 million credit facility to support the transaction.  MidCap Financial will serve as Sole Bookrunner, Administrative Agent and Joint Lead Arranger on this facility.

Hawthorn Pharmaceuticals offers an array of branded pharmaceutical products, including allergy, respiratory, iron deficiency, nephrology and pain management. Cypress Pharmaceuticals offers a range of generic pharmaceutical products in the areas of cough and cold, nutritional supplements, analgesics, urinary tract, women’s health, pre-natal vitamins and dental health.  In 2012, revenues for Cypress and Hawthorn are expected to be approximately $50 million, consisting of approximately 54% generic products and 46% branded products.  Cypress and Hawthorn, founded in 1993, are headquartered in Madison, MS and have 170 employees, including 115 sales representatives (www.cypressrx.com) (www.hawthornrx.com).

“This will be the most significant acquisition in the company’s history. The generic and branded businesses of Cypress and Hawthorn are an excellent fit for Pernix, which is expected to increase the company’s revenues for the full year 2013 to approximately $135 million to $145 million,” said Cooper Collins, President and CEO of Pernix.  “The Cypress and Hawthorn pipeline, which includes products filed with the FDA or in development, will move us forward on our strategic plan to drive the company’s future success. We are enthusiastic about working with the Cypress and Hawthorn’s management team as we integrate our companies. We are confident that Pernix, Cypress and Hawthorn are an excellent combination that will provide strong growth in the future.”

Pernix Therapeutics is a specialty pharmaceutical company primarily focused on the sales, marketing, manufacturing and development of branded, generic and OTC pharmaceutical products. The company manages a portfolio of branded and generic products. Pernix markets its generic products through its wholly-owned subsidiary, Macoven Pharmaceuticals. The company’s wholly-owned subsidiary, Great Southern Laboratories, manufactures and packages products for the pharmaceutical industry in a wide range of dosage-forms.  Founded in 1996, the company is based in The Woodlands, TX (www.pernixtx.com).

Aisling Capital makes investments in healthcare companies that require $20 million to $50 million or more of capital. The size of the investment is contingent upon the company’s stage of development, funding needs and risk profile.  Aisling Capital will often participate in further rounds of financing following its initial investment.  The firm is based in New York, NY (www.aislingcapital.com).

© 2012 PEPD • Private Equity’s Leading News Magazine • 11-14-12