Avista to make 3.7x its money on Arcadia Consumer Healthcare; Great Point Partners’ Softbox hits the market

Avista sells Arcadia Consumer Healthcare and GPP seeks buyer for Softbox.

Happy Monday, everybody!

Today we’ve got another example of sector specialism paying off, plus a healthcare packaging business hitting the auction block as it helps tackle the supply chain needs of the covid-19 crisis.

Gains: In 2005, Avista Capital Partners spun out from DLJ Merchant Banking, opting then to solely focus Avista Capital Partners IV on healthcare. Its dedication to healthcare appears to be a good move.

The New York firm is poised to produce an approximately 3.7x gross multiple of invested capital with the sale of Arcadia Consumer Healthcare to Bansk Group, according to an LP letter.

Bansk, launched in 2019, is a consumer-focused private investment firm led by seasoned industry execs and investment professionals with prior experience at firms including JAB Holding Company, Lightyear Capital, L Catterton, Centerview Partners and TPG Growth.
The sale comes just over three years into Avista’s investment. Under its hold period, Arcadia has built out a portfolio of consumer healthcare products that includes premium vitamin and nutritional supplements, and OTC medicines in the therapeutic hair care, foot care, digestive health and specialty cough categories.

Accounting for the Arcadia proceeds, the firm’s fourth buyout fund will have generated a 2.5x gross MOIC, as of June 30, 2021, the letter states. That includes two other prior exits: MPI Research and Organogenesis.

Avista meanwhile is flush with dry powder to continue this strategy. The firm in February raised $1.2 billion for a fifth flagship offering, far exceeding its target.

Check out my full report on PE Hub.

For sale: Great Point Partners has kicked off a sale process for Softbox, a UK-based provider of passive temperature controlled packaging for pharmaceutical companies, according to four people familiar with the firm’s plans. Baird is advising on the process.
Softbox has developed a range of vaccine parcel shippers and pallet shipping systems capable of safely and securely transporting temperature-sensitive vaccines – ultimately supporting their global distribution, its website states.

For sponsors evaluating the business, sources said, determining what forward-looking normalized EBITDA will look like will be a key question. That said, the supply chain demands of vaccines are not poised to go away.

Other relevant players are CSafe, which, jointly owned by Thomas H. Lee Partners and Frazier Healthcare Partners, manufactures both active and passive containers. Elsewhere, Envirotainer, backed by Cinven and Novo Holdings, is the global leader in active cold-chain technologies for air transport of pharmaceuticals.

For the difference between passive and active containers, plus financials and more, read my full report on PE Hub.

That’s it for me! Have a great week ahead, everyone. As always, write to me with your feedback, tips, book recommendations or any other comments at springle@buyoutsinsider.com.