08.09.21
Avista Capital Partners, a leading New York-based private equity firm with nearly $8 billion invested in 40 growth-oriented healthcare businesses globally, has announced its entry into a definitive agreement to sell Arcadia Consumer Healthcare, Inc. – a leader in the consumer healthcare market for over-the-counter medicines and premium vitamins and nutritional supplements – to Bansk Group, a private investment firm focused on building distinctive consumer brands.
The transaction – the financial conditions for which were not disclosed – is expected to close in September, subject to customary closing conditions and regulatory approvals. Houlihan Lokey served as the exclusive financial advisor to Arcadia and assisted in structuring and negotiating the transaction on its behalf. Ropes & Gray served as Arcadia's legal advisor.
Avista acquired Arcadia's predecessor, Kramer Laboratories, Inc., a company focused on delivering innovative healthcare products, in 2018. Kramer's portfolio brands and products included highly efficacious over-the-counter foot care and specialty cough treatments. Avista then helped lead a comprehensive re-branding and re-launch to create Arcadia – now a leading platform of consumer healthcare products, including premium vitamin and nutritional supplements, and over-the-counter medicines in the therapeutic hair care, foot care, digestive health and specialty cough categories.
Arcadia's flagship brands include Nizoral, a highly efficacious therapeutic dandruff shampoo brand, Naturelo, a leader in premium vitamins and nutritional supplements; Kaopectate, a leader in treatment of diarrhea and upset stomach; Fungi-Nail, a specialty anti-fungal product formulated with a clinically proven ingredient that cures and prevents fungal infections; and Opti-Nail, a new and unique cosmetic fungal nail repair brand. Additional portfolio brands include HC Max, a maximum strength anti-fungal remedy, and Safetussin, a pharmacist-developed cough relief solution for adults suffering from diabetes and/or high blood pressure.
Rob Girardi, partner at Avista, said Avista’s investment in Arcadia was based on its potential for brands to capitalize on the growing trends in self-care, and is confident of its success under Bansk’s ownership.
"We are thrilled with the partnership we've enjoyed with Arcadia in developing a highly-effective strategic M&A program, investing in innovation, and expanding into new markets beyond traditional over-the-counter,” said Girardi. “We're confident that Arcadia will continue to succeed under Bansk's ownership, particularly with Mike DeBiasi and his team remaining at the helm, and are grateful for the opportunity to support them over these last three years."
“Our team has always been motivated to find new opportunities to deliver innovative solutions to everyday healthcare needs, and Avista has been a fantastic partner helping us deliver on this mission,” said Mike DeBiasi, CEO of Arcadia. “Their deep consumer healthcare expertise, proactive approach to M&A, and collaborative strategy for optimizing portfolio company performance has been integral to our rapid growth. Just as importantly, they have helped us build a strong and sustainable platform for even greater expansion and success moving forward. Arcadia is truly excited about continuing to accelerate this growth with Bansk in the next phase for our company."
In the last three years, Arcadia's strategic M&A program has included the acquisitions of Nizoral, Kaopectate and Naturelo, which joined a diverse portfolio of existing consumer healthcare brands under the Arcadia banner, offering simple, efficacious, and high-quality solutions to help consumers achieve the harmony of looking and feeling good.