PE-backed Arizona Natural Resources buys HealthSpecialty

Arizona Natural Resources, which is backed by CORE Industrial Partners, has acquired Santa Fe Springs, California-based HealthSpecialty, a manufacturer of skin, body and hair care products.

Arizona Natural Resources, which is backed by CORE Industrial Partners, has acquired Santa Fe Springs, California-based HealthSpecialty, a manufacturer of skin, body and hair care products. No financial terms were disclosed.

PRESS RELEASE

CHICAGO–(BUSINESS WIRE)–CORE Industrial Partners (“CORE”), a Chicago-based private equity firm, today announced the acquisition of HealthSpecialty (“HealthSpecialty” or the “Company”), a full-service contract manufacturer of skin, body and hair care products with a focus on premium skincare applications, by CORE portfolio company Arizona Natural Resources (“ANR”), based in Phoenix, Arizona.

Founded in 1995 and based in Santa Fe Springs, California, HealthSpecialty is a turnkey provider of R&D, formulation, compounding, filling and packaging solutions for the personal care industry.

HealthSpecialty offers robust formulation services with an in-house research and development team that has developed an extensive formula library containing more than 4,500 formulas. The Company’s product offering includes skin creams, body lotions, serums, sunscreen, and OTC products. HealthSpecialty is FDA-certified and maintains cGMP and OTC drug certifications.

Together, HealthSpecialty and ANR have more than 550,000 square feet of production space and nearly 50 filling lines across three manufacturing facilities in Arizona, Nebraska, and California. The combination will expand ANR’s product portfolio in the premium skincare category, enabling the platform to serve a broader range of personal care and beauty applications across a wide spectrum of unit sizes.

Frank Papa, Senior Partner of CORE, said, “Our investment in HealthSpecialty continues CORE’s focus on building a leading beauty and personal care contract manufacturing franchise serving both established and emerging brands. We believe the combination of HealthSpecialty with ANR will prove highly impactful in both augmenting the platform’s existing product offerings and adding new capabilities and geographic reach.”

Neil Badlani, Founder and President of HealthSpecialty, said, “Since HealthSpecialty’s inception, we’ve been committed to providing exceptional formulation solutions and dedicated service for our customers with the goal of building the business into a leader in the premium skincare space. We’ve now reached an inflection point in our growth trajectory and believe leveraging ANR’s complementary product offerings and R&D capabilities will yield immediate benefits for our customers while accelerating our growth.”

Norton Rose Fulbright provided legal representation to CORE and ANR in the transaction.

ABOUT CORE INDUSTRIAL PARTNERS:
CORE Industrial Partners is a Chicago-based private equity firm with $700 million of capital commitments investing in North American lower middle-market manufacturing, industrial technology and services businesses. CORE’s team is comprised of highly experienced former CEOs and investment professionals with shared beliefs, deep experience, and a proven track record of building market-leading businesses. Through our capital, insight, and operational expertise, CORE partners with management teams and strives to build best-in-class companies.