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Sentinel Adds to Healthcare Portfolio
Sentinel Capital Partners, a private equity firm that invests in promising lower middle market companies, today announced its acquisition of WellSpring Pharmaceutical Corporation, a North American manufacturer and marketer of specialty prescription and over-the-counter pharmaceuticals. Sentinel completed the transaction alongside Ancor Capital Partners, an independent sponsor with extensive healthcare expertise.
WellSpring’s prescription drugs and OTC brands have widespread distribution through pharmaceutical distributors, wholesalers, and major food and drug retailers. WellSpring prides itself on providing highly effective prescription medications in much-needed applications for niche patient groups. WellSpring also manufactures pharmaceuticals for other drug companies on a contract basis from its production facility in Ontario, Canada.
“WellSpring is an innovator that provides quality pharmaceutical products and related services across a diverse set of end markets. The opportunity to invest alongside Ancor was also a strong incentive for us,” stated Eric D. Bommer, Partner at Sentinel. “We believe WellSpring is well positioned to accelerate its growth and we look forward to working with its management team and Ancor in taking WellSpring to the next level.”
“WellSpring is Ancor’s fifteenth acquisition of a healthcare company and combines our experience in pharmaceutical sales, OTC products, and contract manufacturing,” said J. Randall Keene, Managing Partner at Ancor Capital Partners, who will serve as CEO of WellSpring. “We are very pleased to have teamed with Sentinel on this acquisition and we look forward to working closely with them,” added Mr. Keene.
Dr. Robert A. Vukovich, founder and CEO of WellSpring, reinvested in the company and will serve on its board of directors. Dr. Vukovich commented, “I am pleased to have found a buyer who will continue the high quality standards that Wellspring established, and feel I have passed the company into very capable hands that will continue to accelerate growth.” Ms. Bonnie Feeney, President and COO of Wellspring Pharmaceutical Canada Corporation, and Ms. Wendy Shusko, COO and CFO of Wellspring Pharmaceutical Corporation USA, also reinvested in WellSpring and will continue in their current positions.
Sentinel’s investment in WellSpring continues its focus on healthcare. In September 2011, Sentinel acquired National Spine & Pain Centers, a leading provider of management services to physicians specializing in interventional pain management procedures. Other current Sentinel healthcare holdings include Massage Envy, the nation’s largest provider of therapeutic massage services, and Interim Healthcare, one of the nation's largest providers of home nursing care. Sentinel successfully exited two healthcare investments in 2010, ReachOut Healthcare America, the nation’s leader in mobile dental services, and Strategic Partners, a leading provider of medical uniforms. Sentinel previously sold Metro Dentalcare, a regional multi-specialty dental group, to American Dental Partners (NASDAQ:ADPI) in 2007, and Castle Dental Centers, a leading regional dental services provider, to Bright Now! Dental in 2004.
The Wellspring transaction continues Sentinel’s successful record of partnering with independent sponsors. Sentinel’s 2009 investment in Massage Envy and 2011 investment in Critical Solutions were also made together with independent sponsors, each of whom offered invaluable assistance before the closings and continue to add value.