U.S. private equity firm Sentinel Capital Partners has sold WellSpring Pharma Services Inc, an Oakville, Ontario-based pharmaceutical contract manufacturing organization operating across North America.
Terms weren’t disclosed; however, U.S. specialty pharmaceutical company ANI Pharmaceuticals Inc (Nasdaq: ANIP) said in a release it bought Wellspring for US$18 million in cash.
Sentinel acquired WellSpring in 2011. Ancor Capital Partners also invested. Over the investment period, Sentinel said the company sharpened its focus through divestitures and add-on deals.
WellSpring’s consumer healthcare business was sold last year to Audax Private Equity.
Sentinel Capital Partners Sells WellSpring Pharma Services
SUCCESSFULLY COMPLETES THIRD AND FINAL DIVESTITURE OF WELLSPRING PLATFORM
NEW YORK, August 9, 2018 – Sentinel Capital Partners, a private equity firm that invests in promising companies in the lower midmarket, today announced the sale of WellSpring Pharma Services, a leading North American pharmaceutical contract manufacturing organization. Terms of the deal were not disclosed.
WellSpring Pharma Services provides outsourced manufacturing and contract development services to emerging-growth, mid-sized, and large pharmaceutical and biotechnology clients in the US and Canada. WellSpring has particular strength working with clients that need flexibility, customization, personalized attention, and technical expertise. WellSpring is equipped to manufacture prescription drug products in virtually all non-sterile finished dosage forms and also provides primary and secondary packaging services. WellSpring also offers formulation, tech transfer, and analytical chemistry services to its clients.
“Trends in the pharmaceutical industry have continued to drive demand for WellSpring’s manufacturing services,” said John Van Sickle, a Sentinel partner. “WellSpring addresses this demand with an industry-recognized commitment to quality and regulatory compliance.”
At the outset of Sentinel’s 2011 investment, WellSpring consisted of three divisions: a consumer portfolio of over-the-counter health and personal care products; a portfolio of specialty prescription drugs; and a contract manufacturer of pharmaceutical products. Under Sentinel’s ownership, WellSpring sharpened its focus by divesting its specialty Rx portfolio and bolstering the market position of its consumer healthcare portfolio with three OTC add-ons. WellSpring then sold its consumer healthcare business in 2017. The sale of WellSpring Pharma Services completes Sentinel’s final exit from its original WellSpring investment.
The past 12 months have been highly productive for Sentinel. Besides the sale of WellSpring Pharma Services, Sentinel sold Huddle House, a franchisor of family dining restaurants in the Southeast; PlayCore, the leading North American supplier of play, park, and recreation products; and WellSpring Consumer Healthcare, a North American marketer of OTC health brands. In the same time period, Sentinel made five new platform investments, including: Captain D’s, a leading restaurant operator in the QSR seafood sector; GSM Outdoors, a leading provider of technologically-advanced, branded accessories for the hunting, sport shooting, and outdoor enthusiast markets; MB2 Dental Solutions, a rapidly-growing dental service organization with a unique physician-centric ownership model; Nekoosa, a leading manufacturer of specialty paper and film products used in the graphics and commercial print markets; and UBEO, a leading provider of document processing services in Texas.
About Sentinel Capital Partners
Sentinel Capital Partners specializes in buying and building lower midmarket companies in the United States and Canada in partnership with management. Sentinel targets aerospace and defense, business services, consumer, distribution, food and restaurants, franchising, healthcare, and industrial businesses. Sentinel invests in management buyouts, recapitalizations, corporate divestitures, and going-private transactions of established businesses with EBITDA of up to $65 million. Sentinel also invests in special situations, including balance sheet restructurings, and operational turnarounds. For more information about Sentinel, visit www.sentinelpartners.com.
About WellSpring Pharma Services
WellSpring Pharma Services is a leading pharmaceutical contract manufacturing organization that emphasizes quality, precision and constant improvement. WellSpring is backed by an experienced team of highly skilled pharmaceutical professionals, a modern facility with advanced equipment and a commitment to quality, compliance and customer service. WellSpring adheres to strict Current Good Manufacturing Practice standards and has an excellent audit history with the US Food and Drug Administration and Health Canada. Founded in 2001, WellSpring Pharma Services is headquartered in Ontario, Canada and had approximately 120 employees. For more information, visit www.wellspringcmo.com.
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