H.I.G. CAPITAL ACQUIRES ACCUPAC, INC.
April 10, 2003 - H.I.G. Capital, a Miami-based private equity firm, announced today that it has acquired Accupac, Inc. Accupac, headquartered in Mainland, PA, provides comprehensive manufacturing, packaging, quality assurance and procurement services on an outsourced basis for the personal care industry. The company produces and packages brand name liquid, cream, lotion and paste formulations of over-the-counter drugs and high-end health and beauty aids in an FDA regulated cGMP compliant environment. Accupac serves a diversified blue chip customer base of large pharmaceutical and consumer packaged goods companies and is projected to generate over $70 million of revenue in 2003.
In announcing the transaction, Brian Schwartz, Managing Director of H.I.G. Capital, stated: "Accupac provides us with a substantial platform in a market characterized by non-cyclical demand and exciting growth rates. The company's tight focus on non-solid dose formulations of over-the-counter drugs provides significant barriers to entry due to the challenges of regulatory compliance and allows it to be truly best in class with respect to technology and processes. The company is exceptionally well positioned to continue to benefit from the favorable long term trends existing in the marketplace." Matt Sanford, also of H.I.G. added," We are particularly pleased to be partnering with such a strong management team in this investment. The company's existing leadership has deep experience and relationships in the industry, having previously held senior executive roles with other outsourced service providers as well as with larger companies in the target customer base where they were responsible for managing the relationships with outsourced service providers. This transaction will allow the team to significantly increase their ownership of the business, which will help the company to complete its transition from family owned and operated to a professionally managed business."
Bruce Decker, Accupac's President and CEO, said, "We are very excited to partner with H.I.G. Capital to facilitate our growth. With the added financial, operational and strategic support that H.I.G. offers its portfolio companies, we will build upon our position as the provider of choice in the high-end niche that we serve. Over the past three years, this management team has focused on providing increasing levels of customer service to a more tightly defined target market and strengthening our relationship with the FDA. These initiatives have translated into exciting revenue growth, increased stability and a fattening bottom line. We believe that this transaction will allow us to accelerate our growth plan meaningfully and are consequently moving forward our goals by a number of years."
H.I.G. Capital is a leading private equity and venture capital investment firm with more than $1 Billion of equity capital under management. Headquartered in Miami and with additional offices in Atlanta, Boston and San Francisco, the firm specializes in providing capital to small and medium sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well managed manufacturing or service businesses, and in promising early-stage technology companies. H.I.G. also has extensive experience with financial restructurings and operational turnarounds. Since its founding, H.I.G. Capital has completed in excess of 70 transactions. The firm currently manages a portfolio of more than 40 companies with combined revenues in excess of $5 Billion.
Terms of the transaction were not disclosed.
Principals of Fairmount Partners acted as advisors to Accupac in this transaction.
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