Target: Insight Pharmaceuticals
Price: $750 million
Multiple: About 8x adjusted EBITDA
Sponsor: Swander Pace Capital
Buyer: Prestige Brands Holdings
Legal Counsel: Kirkland & Ellis LLP
Prestige Brands paid about 8x adjusted EBITDA of $80 million for Insight Pharmaceuticals, after factoring in transition, integration and purchase accounting items, according to a presentation by the publicly traded acquirer. Swander Pace declined to comment on the purchase price multiple for the deal.
Announced in April and closed on Sept. 3, the acquisition came about partly because of Swander Pace’s ties with Prestige Brands, which had drawn an investment from the firm several years ago.
As Swander Pace grew revenue at Insight Pharmaceuticals to more than $200 million from $80 million, the San Francisco and New Jersey-based firm had been exploring its next steps at the company and was approached by Prestige Brands.
“We did not run a formal auction process when Prestige came to us with an offer,” Mo Stout, managing director of Swander Pace, told Buyouts. “We felt it was an attractive valuation and an attractive multiple.”
Swander Pace added on the e.p.t. pregnancy test brand business in a deal with Johnson & Johnson in 2011, and then brought in Ontario Teachers’ Pension Plan an an investor for its bigger add-on transaction for vaginal medicine maker Monistat for roughly $350 million in the same year.
Recently on the fundraising trail, Swander Pace closed SPC Partners Fund V in April with $350 million in commitments.