Swander Pace Makes Pharma Play
The PE firm known for buying consumer companies takes out Insight Pharmaceuticals, maker of OTC ailment treatments.
June 24, 2009
Swander Pace Capital bought Insight Pharmaceuticals Corp., maker of over-the-counter treatments including Sucrets, Dermarest and Anacin.
Terms of the deal were not disclosed and calls seeking comment were not returned.
Insight comes to the Swander Pace portfolio from Allied Capital Corp., a listed business development company that, as of late, has sought to reduce debt and bolster its liquidity during a slow deal environment. Allied paid $155 million to buy the company in 2004 after providing it with $10 million in debt financing the prior year; the company until Allied was held by Catterton Partners.
The pharmaceutical space has seen M&A flourish in 2009 at a time when most industries are challenged in finding and funding deals. Multiple smaller oncology companies have been bought out by expanding conglomerates; Merck, GlaxosmithKline and Pfizer each worked to consolidate the industry via dealmaking. Private equity has been active as well, with Topspin Partners and Integris buying Sanuwave, which supports veterinary medicine, earlier this year.
Swander Pace succeeded in a bad fundraising environment in assembling a $340 million fund at the end of 2008; the private equity firm still has multiple investments to make to support that platform.
Since 1996, Swander Pace has invested in about three dozen companies with aggregate revenues in excess of $2 billion. Other Swander Pace investments include Santa Cruz Nutritionals, a supplemental vitamin company, Totes Isotoner, an apparel maker, and Gilchrist & Soames, a personal care company.
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