VersaPharm attracts interest of PE

We have an update on the VersaPharm sale.

Five private equity firms are looking at the generic drug maker, which is being sold by Tailwind Capital, two sources said. It was unclear who are the PE firms. One buyout exec said lower middle market firms would be most interested in VersaPharm.

Tailwind Capital acquired VersaPharm in 2007. The generic drug maker’s EBITDA has grown to $50 million from $8 million, a different source said. Tailwind is seeking bids of 8x to 10x, the person said.

Marietta, Georgia-based VersaPharm develops generic products designed to treat tuberculosis and other infectious diseases, the Tailwind Capital website said.

New York-based Tailwind Capital spun off in 2006 from Thomas Weisel Partners, the San Francisco-based investment bank. The firm targets middle-market companies in healthcare and business and communication services.

The auction comes as Tailwind is out fundraising for its second pool. The private equity firm is seeking $750 million for Tailwind Capital Partners II LP, according to an SEC filing in October. MVision is the placement agent.

Executives at Tailwind and VersaPharm did not return calls requesting comment.

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