Private equity firm Gryphon Investors has acquired a majority stake in C.B. Fleet Co. for an undisclosed amount.

C.B. Fleet, headquartered in Lynchburg, Virginia, makes over-the-counter health care products, including the Summer's Eve, Fleet, Norforms, Pedia-Lax, Phazyme and Boudreaux's product lines. The company does business as Fleet Laboratories.

San Francisco-based Gryphon focuses on leveraged acquisitions and investments in middle market companies. The firm has about $1.4 billion in equity commitments, and generally invests up to $100 million in capital per deal.  As part of the deal, Steve LaMonte, a Gryphon adviser and over-the-counter executive will become chairman of the board of C.B. Fleet. CEO Jeff Rowan and the rest of the company's existing management team will remain in place.

"We believe the OTC sector is poised for continued expansion as consumers migrate toward more economical non-prescription products and that Fleet has unique and differentiated capabilities to serve these markets," says Gryphon partner Dennis O'Brien.

Houlihan Lokey acted as Gryphon's financial adviser, while TM Capital Corp. provided financial advice to C.B. Fleet. Kirkland & Ellis LLP was Grphyon's legal adviser, while Hunton & Williams LLP and Edmunds & Williams PC acted as C.B. Fleet's legal counsel. Golub Capital acted as sole lead arranger and administrative agent on a senior credit facility to support the deal.

In another OTC deal, Prestige Brands (NYSE: PBH) closed a deal for Insight Pharmaceuticals, maker of  home pregnancy test EPT and medication Monistat, for $750 million in September. 

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