Pharmaceuticals Acquisitions in 2019

HealthEdge Investment Partners, a Tampa-based healthcare-focused private equity firm, completed an acquisition of Legacy-Xspire Holdings, LLC, a Ridgeland, Mississippi-based branded and generic pharmaceutical marketing and distribution platform, on December 18, 2019. The deal adds a pharmaceutical marketing and distribution capability (combining WraSer Pharmaceuticals, Gentex Pharma, and Xpsire Pharma) to HealthEdge's portfolio to support organic growth and product acquisitions across the U.S.

The Riverside Company has acquired HealthTech BioActives S.L. (HTBA), a Spanish manufacturer of APIs, excipients, natural flavors and vitamin B12 derivatives, in a carve-out from Ferrer. Riverside will work with HTBA’s ~140 employees and its manufacturing sites in Beniel (Murcia) and Barcelona to strengthen commercial capabilities, accelerate new product development and expand global sales.

The STADA Group agreed to acquire the pharmaceutical prescription and consumer health business of Ukrainian producer Biopharma, including GMP-certified production facilities in Bila Tserkva. The deal integrates Biopharma's pharma operations into STADA's European organization, expands STADA's local production footprint in Ukraine and is subject to Ukrainian merger control; Biopharma's shareholders will retain the company's plasma business.

Farragut Capital Partners led a growth investment in Particle Dynamics, Inc., joined by BroadOak Capital Partners; Particle Dynamics is a portfolio company of Edgewater Capital Partners. The capital will support the company's growth and capability expansion across its particle processing, microencapsulation and finished-dosage manufacturing services operating from FDA‑inspected facilities in St. Louis, Missouri and Seymour, Indiana.

Enhanced Healthcare Partners (EHP), together with Bourne Partners Strategic Capital (BPSC), announced the acquisition of Pharmaceutical Associates, Inc. (PAI), a U.S. manufacturer of generic liquid and unit-dose pharmaceuticals. The investment will provide growth capital to expand PAI's manufacturing capacity, product lines and market footprint while leveraging BPSC's pharmaceutical network and EHP's healthcare investment experience.

H.I.G. Capital, through an affiliate, completed the acquisition of BioVectra Inc., a Canadian contract development and manufacturing organization (CDMO) specializing in active pharmaceutical ingredients (APIs), intermediates and biologics. The deal — a carve-out from Mallinckrodt — positions H.I.G. to support BioVectra's growth and further expand its manufacturing capabilities across Charlottetown, Prince Edward Island and Windsor, Nova Scotia.

Equistone Partners Europe has agreed to acquire a majority stake in Omnicare, a German pharmaceutical wholesaler specializing in distribution of finished medicines to compounding pharmacies for patient-specific oncology treatments. The seller is a consortium of shareholders that will retain a stake; Omnicare’s management, led by Oliver Tamimi, will remain in place and the deal (terms undisclosed) is expected to close in Q4 2019.

Funds advised by Triton Partners have acquired a majority stake in Atnahs, a UK-based specialty pharmaceutical business that acquires, develops and markets mature branded medicines. Atnahs operates a portfolio of over 800 SKUs across more than 130 markets; terms of the transaction were not disclosed.

Elanco Animal Health Incorporated completed its acquisition of Aratana Therapeutics, a developer and commercializer of specialty therapeutics for dogs and cats, including Galliprant, Entyce and Nocita. The deal expands Elanco's companion animal product portfolio and establishes a dedicated specialty veterinary commercial team to integrate Aratana's field force and pipeline.

Karo Pharma AB (publ) has signed a definitive agreement to acquire Trimb Healthcare from Avista Capital Partners for SEK 3.4 billion. Trimb, a Stockholm‑based consumer healthcare company with ~90 employees and a portfolio of OTC brands, will expand Karo Pharma's geographic presence, distribution channels and product offerings in the Nordic and Northern European consumer health market.

CutisPharma, majority-backed by NovaQuest Private Equity (now QHP Capital), has acquired Silvergate Pharmaceuticals and the combined company will be rebranded as Azurity Pharmaceuticals. The transaction consolidates complementary specialty pharmaceutical portfolios and capabilities—combining CutisPharma’s recently launched products with Silvergate’s SG-05 pipeline submission—and is supported by debt financing arranged by Goldman Sachs Specialty Lending Group.

Great Point Partners completed a growth recapitalization of Raleigh-based Tergus Pharma to fund construction of a new 100,000 square-foot commercial manufacturing facility for topical dermatology pharmaceuticals. The investment will expand Tergus' clinical and commercial manufacturing capacity and enable the company to offer end-to-end formulation, testing, and manufacturing services.

UK-based CDMO Sterling Pharma Solutions, a portfolio company of GHO Capital, has acquired the CiVentiChem US facility in Cary, North Carolina to establish a local presence for its North American clients and expand its chemistry development and kilo-scale cGMP capabilities. The acquisition supports Sterling’s strategy to build a global chemistry services business and follows GHO Capital’s majority investment in Sterling earlier this year.

GHO Capital has acquired a majority stake in Sterling Pharma Solutions alongside management. The investment will support Sterling's international expansion and accelerate growth of its specialist API development and GMP manufacturing capabilities from its UK base in Newcastle upon Tyne.

TPG Growth will invest $30 million in Solara Active Pharma to support the Indian API manufacturer's growth and capacity expansion into regulated markets. The minority growth equity investment is intended to help Solara scale manufacturing and R&D capabilities and strengthen its position with global generic customers in the US and Europe.

Cambrex Corporation completed the acquisition of Avista Pharma Solutions from Ampersand Capital Partners in a transaction announced November 20, 2018 and completed January 2019 (reported consideration about $252 million). The deal brings Avista’s early‑stage drug development, analytical/testing and finished dosage capabilities (sites in Longmont, CO; Durham, NC; Agawam, MA; and Edinburgh, UK) into Cambrex’s global CDMO network to expand capabilities and cross‑sell services.