Swander Pace Capital has agreed to sell Insight Pharmaceuticals to Prestige Brands Holdings for $750 million. Kirkland & Ellis worked as legal advisor to Swander Pace on the sale.
Swander Pace Capital (“SPC”), a leading private equity firm specializing in investments in consumer products companies, announced today that it is selling its over-the-counter (OTC) products portfolio company, Insight Pharmaceuticals (“Insight”), to Prestige Brands Holdings (NYSE: PBH) 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 (“Teachers’”), to grow Insight into one of the leading OTC pharmaceutical companies,” said Mo Stout, Managing Director at SPC. “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.”
“The SPC team was essential in providing the guidance and financial support to aggressively grow our business,” commented 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 SPC and Teachers’ for their commitment and support as we enter our next phase of growth with Prestige.”
Under the ownership of SPC and Teachers’, Insight expanded its product portfolio of OTC women’s health and personal care products, adding high profile brands e.p.t®, the leading home pregnancy testing brand, and MONISTAT®, the #1 brand in the vaginal anti-fungal category. The Insight portfolio consists of nearly 30 OTC brands, and the company has become one of the most innovative and fastest-growing players in the category.
Corby Reese, Managing Director at SPC added, “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.”
Kirkland & Ellis LLP served as legal advisor to SPC on the sale.
About Swander Pace Capital
Swander Pace Capital is a leading private equity firm specializing in investments in growth-oriented, middle-market consumer products companies in North America and the United Kingdom. Since its inception in 1996, Swander Pace Capital has applied its consumer products expertise pursuing a consistent strategy of acquiring or investing in consumer products companies with leading market positions in attractive, defensible niches. With staff in San Francisco, New Jersey, and Ontario (Toronto), Swander Pace Capital provides portfolio companies with a unique mix of financial and strategic consulting support to create long-term value. Swander Pace Capital has raised over $1.3 billion of equity capital through five private equity funds and has led successful investments in more than 40 consumer products companies with total revenues in excess of $2.0 billion. For more information, visit www.spcap.com.
About Ontario Teachers’ Pension Plan
With $140.8 billion in assets as of December 31, 2013, the Ontario Teachers’ Pension Plan is the largest single-profession pension plan in Canada. An independent organization, it invests the pension fund’s assets and administers the defined benefit pensions of 307,000 active and retired teachers in Ontario. For more information, visit www.otpp.com.
About Insight Pharmaceuticals
Insight Pharmaceuticals is a consumer products company whose strategy is to generate growth by acquiring brands with solid consumer equity that can be further developed through their merchandising and marketing expertise. The company strengthens its portfolio of brands by employing a variety of strategies, all with an in-depth understanding of the heritage of the brand and the needs of the consumer. Additional information about Insight Pharmaceuticals can be found at. www.InsightPharma.com.