Emerson Group, private equity firms partner on venture
WAYNE, Pa. – The health care private equity firms Hildred Capital Management, LLC and Bourne Partners Strategic Capital, together with The Emerson Group, have launched Carlin Consumer Health to establish a preeminent consumer health business and to acquire leading over-the-counter (O-T-C) brands. Carlin will be uniquely positioned to acquire and commercialize well-established brands as well as support its retail partners and their customers, the companies said.
O-T-C products offer 24/7 access to important treatment solutions and deliver significant value to the US healthcare system as the first line of healthcare defense for millions of Americans. They are convenient and effective solutions for self-treating conditions, such as the common cold, allergies, gastrointestinal issues, and pain.
In connection with its formation, Carlin on Tuesday announced the acquisition of Zegerid OTC from Bayer AG. Zegerid is an O-T-C proton pump inhibitor used for the treatment of frequent heartburn with a unique dual-ingredient, branded combination that provides 24-hour relief from one daily capsule. Carlin plans to launch new consumer awareness campaigns using print and digital media as well as promotional programs with the top US retailers.
“As the O-T-C market continues to grow rapidly and large pharmaceutical companies look to divest one-off consumer brands, we see a number of compelling investment opportunities for firms with the healthcare experience, industry relationships and operational know-how needed to drive growth,” said Andrew Goldman, Managing Partner of Hildred. “We believe our firms’ collective expertise and track record for building similar platforms, such as Crown Laboratories, Inc. and Covis Pharma, position Carlin extremely well to drive substantial value creation for all stakeholders.”
“We are excited to collaborate with Hildred and Emerson to build a platform of strategically-aligned brands that can benefit from our operationally-focused strategy and collaborative approach to partnering with retailers to meet the health and wellness needs of consumers and their families,” said Minor Hinson, Chief Investment Officer of Bourne. “We look forward to transitioning Zegerid to Carlin and pursuing additional attractive opportunities in our pipeline.”
“With market-leading consumer loyalty and significant potential for growth through investments in sales, marketing and product development, Zegerid is a terrific first asset for Carlin,” said Scott Emerson, CEO of The Emerson Group. “As a well-capitalized platform with shareholders that maintain longstanding industry relationships, Carlin is uniquely positioned in this space, and we look forward to building out our platform with additional accretive acquisitions.”
Carlin represents Hildred’s third platform investment in the OTC industry, and the Zegerid acquisition emerged from Bourne’s partnership with Emerson to establish a preeminent consumer health business. The financial terms were not disclosed. Lowenstein Sandler served as legal adviser to Carlin on the acquisition.