Private equity firm Sentinel Capital Partners has sold WellSpring Consumer Healthcare, a North American marketer of leading consumer health brands. Terms of the deal have not been disclosed.
WellSpring Consumer Healthcare manages a portfolio of high-performing consumer healthcare brands, including Emetrol, Bonine, Bactine, GlaxalBase, and FDS. These brands occupy the #1 or #2 positions in their respective segments and benefit from a long-standing heritage, high awareness among consumers, and an entrenched retail presence. WellSpring Consumer Healthcare possesses an in-house acquisition capability coupled with a highly efficient and scalable operating model which has proven its ability to identify and integrate new brands and successfully scale its portfolio.
“WellSpring owns iconic brands with strong leadership positions,” says John Van Sickle, a Sentinel partner. “WellSpring’s OTC business is a proven M&A platform with a compelling financial profile and a meaningful runway for future growth. Moreover, a fertile M&A environment has produced a large supply of high quality, actionable add-on acquisitions.”
At the outset of Sentinel’s 2011 investment in WellSpring, the company 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 narrowed its focus by divesting its Rx portfolio and bolstered its market position by completing three OTC add-on acquisitions for its consumer healthcare portfolio. Following the sale of WellSpring Consumer Healthcare, Sentinel will continue to own WellSpring’s contract manufacturing business.
Sawaya Segalas & Co, which assisted WellSpring with its OTC acquisition strategy, was lead advisor to WellSpring in the transaction. Houlihan Lokey Capital, Inc. served as co-advisor.
The past 12 months have been highly productive for Sentinel. Besides the divestiture of WellSpring Consumer Healthcare, Sentinel sold Checkers and Rally’s Restaurants, an iconic and innovative drive-thru restaurant chain, National Spine & Pain Centers, a leading service provider to interventional pain management physicians, and Power Products, a leading global provider of branded electrical products and systems. In the same time period, Sentinel made three new platform investments, including: Altima Dental, the largest dental services organization in Canada; Cabi, a leading direct marketer of women’s fashion apparel; and SONNY’S Enterprises, the worldwide leader in conveyorised car wash systems.
