SOUTHPORT, Connecticut, December 8, 2008 - Carter Morse & Mathias today announced that Allan Holdings, LLC has sold its generic drug division to VersaPharm, Inc., a portfolio company of Tailwind Capital Partners. Terms of the transaction, which closed in late 2008, were not disclosed. Carter Morse & Mathias was Allan’s exclusive financial advisor on this transaction.
Allan is a privately-held, vertically-integrated manufacturer of over-the-counter drugs, specializing in liquids, semi-solids and creams. Its operations encompass all aspects of market research and product selection, product development, manufacturing, packaging, logistics, distribution and sales. The Company's principal remaining business involves the manufacture of private-label products for national retailers in the United States, including CVS, Rite Aid, Dollar General, Wal-Mart, Dollar Tree and Safeway. Allan competes as a niche supplier of store-brand products across a number of fast growth categories including skin care, first aid, feminine hygiene and oral hygiene.
Neil Sirkin, Allan's President said, "This transaction enables Allan to focus on our core business - developing, manufacturing and distributing store brand products for the nation's premier drug store, grocery and big box retailers. Our future is bright as major retailers aggressively introduce and promote new private-label store brands to compete with national brands, at competitive prices on products of equal quality."
Founded in 2003, Tailwind Capital is a private equity firm that makes control investments in middle-market companies in healthcare, media/communications, and business services. Today, Tailwind Capital has $2.0 billion under management. VersaPharm develops and markets specialty prescription products in the United States. These include pharmaceuticals for Tuberculosis, Hemophilia, Anthrax, STD, blood disorders and other diseases. This transaction expands VersaPharm’s portfolio of generic pharmaceuticals.
Gary Mathias, Managing Director of Carter Morse & Mathias, explained, “In today’s environment, it is critical for all companies to concentrate on their core business and enhance their balance sheet. Allan has achieved this goal with the VPI transaction and is now better positioned to capitalize on the explosive growth in store brand products as American consumers look to save money on products they need and continue to buy, even in an economic downturn.