Swander Pace Capital has agreed to sell its over-the-counter products portfolio company, Insight Pharmaceuticals, to Prestige Brands for $750 million.
“It has been a pleasure working with CEO Gary Downing, the Insight team and our co-invest partner, Ontario Teachers’ Pension Plan, to grow Insight into one of the leading OTC pharmaceutical companies,” said Mo Stout, Managing Director at Swander Pace. “By implementing our investment playbook – including investing in brand development, driving cost improvements, and executing two strategic acquisitions – we were able to transform the company in five years and substantially increase its value.”
During the term of ownership, Insight expanded its product portfolio of OTC women’s health and personal care products, adding brands e.p.t, a home pregnancy testing brand, and MONISTAT, a leading brand in the vaginal anti-fungal category.
Today, Insight Pharmaceuticals markets a portfolio of niche over-the-counter brands including Anacin, Bonine, Dermarest, e.p.t., Gentle Naturals, MONISTAT, NIX, and Sucrets that are sold to food, drug, and mass retailers throughout the US and Canada. The company is based near Philadelphia in Trevose, PA (www.insightpharma.com).
“During our ownership, Insight was able to grow sales from approximately $79 million to over $200 million. This transaction represents another successful execution of our consumer products investment strategy to attract and partner with world class teams, implement effective marketing strategies, optimize sales force productivity and drive operating efficiencies,” said Corby Reese, Managing Director at Swander Pace.
Swander Pace Capital invests in middle-market consumer products companies including branded and non-branded, manufacturers, marketers, and distributors that sell through a range of retail and institutional channels. The firm generally targets companies that have up to $300 million in revenues. Swander Pace was founded in 1996 and has offices in San Francisco, CA; Bedminster, NJ; and Oakville, ON (www.spcap.com).
Ontario Teachers’ Pension Plan, with $140.8 billion in assets as of December 31, 2013, is the largest single-profession pension plan in Canada and is based in Toronto (www.otpp.com).
“The Swander Pace team was essential in providing the guidance and financial support to aggressively grow our business,” said Gary Downing, CEO of Insight. “Through research-driven marketing and sales execution, we were able to significantly strengthen our product portfolio. On behalf of our team, I would like to thank Swander Pace and Teachers’ for their commitment and support as we enter our next phase of growth with Prestige.”
Prestige Brands (NYSE: PBH) markets and distributes over-the-counter healthcare and household cleaning products. It was formed by the merger of Medtech Products, Prestige Brands International, and The Spic and Span Company in 2005. Among the brands owned by Prestige include Chloraseptic sore throat products, Clear Eyes, Compound W wart remover, Dramamine, Efferdent, Luden’s, and the Comet and Spic and Span cleaning products. The company is headquartered in Tarrytown, NY (www.prestigebrands.com).
Kirkland & Ellis LLP served as legal advisor to Swander Pace on the sale of Insight to Prestige Brands.
© 2014 PEPD • Private Equity’s Leading News Magazine • 4-25-14
