Audax Private Equity has bought Wellspring Consumer Healthcare, a distributor of branded hygiene and cosmetic products, from private equity firms Sentinel Capital Partners and Ancor Capital Partners. The buyer anticipates building Wellspring “through organic growth and add-on acquisitions,” according to Audax Group co-CEO Geoffrey Rehnert.
Wellspring is a North American manufacturer of over-the-counter pharmaceuticals, specialty prescriptions, and cosmetic brands. The Sarasota, Florida-based target has a portfolio of products that span the skin care, feminine hygiene, and gastrointestinal care categories. Wellspring’s portfolio of brands includes: Bactine, Bonine, FDS, Emetrol, Micatin, Gelusil, Glaxal Base, Barriere, and K-Lyte. The company was first acquired by Sentinel and Ancor in November 2011.
Headquartered in Boston, Audax backs lower middle-market companies with up to $35 million in Ebitda. Audax has been rather busy recently. In July, the PE firm bought industrial cleaning and maintenance service provider EnviroVac Holdings LLC. Audax also combined two companies to form an automotive aftermarkets parts distributor called APC Automotive Technologies in May. The firm previously won Mergers & Acquisitions’ 2015 Mid-Market Award for Private Equity Firm of the Year.
Sentinel is a lower middle-market private equity firm based in New York. The firm backs businesses with up to $65 million in Ebitda across the aerospace and defense, business services, consumer, distribution, food and restaurants, healthcare and industrial sectors. Sentinel has also been busy with acquisitions lately. The firm acquired women’s apparel distributor Cabi Holding Co. LLC; purchased home show operator Marketplace Events; marketing training company Corporate Visions; auto parts maker Driven Performance Brands; restaurant operator Fazoli’s Group; and relocation service provider Total Military Management.
Financial terms of the Wellspring deal were not disclosed. Houlihan Lokey (NYSE: HLI) and Sawaya Segalas & Co. served as financial advisers to Wellspring, while Ropes & Gray LLP served as legal counsel to Audax.