Crown Laboratories Acquires Select Consumer Healthcare Brands from GlaxoSmithKline
JOHNSON CITY, TN (Nov. 30, 2018)—Crown Laboratories, Inc. (“Crown Laboratories”), a leading, fully integrated skin care company and Hildred Capital Partners LLC (“Hildred”) portfolio company, today announced it has acquired North American distribution rights of five (5) OTC consumer brands from GlaxoSmithKline (“GSK”).
GSK’s consumer healthcare portfolio has long been regarded as high quality, safe and effective, maintaining a quality image and loyal base of consumers. OTC medications allow practitioners and their patients the ability to access therapeutic products while reducing the burden of prescription drug costs on the healthcare system. The products expand Crown Laboratories’ consumer portfolio by adding #1 in category brands that treat multiple conditions. The acquired portfolio includes:
- PanOxyl®: #1 Dermatologist recommended daily acne wash
- Sarna®: #1 Dermatology recommended anti-itch lotion
- Zeasorb®: #1 Dermatologist recommended anti-fungal and prevention product
- Desenex®: Anti-fungal powder for athlete’s foot
- Mineral Ice®: Leading pain-relieving gel
The brands all have a strong heritage and lengthy history in the market. PanOxyl, Sarna, and Zeasorb are three (3) former Stiefel Laboratories, Inc. brands that have earned #1 Dermatologist Recommended status through decades of strong support from dermatologists. “Acquiring these strong heritage brands strengthens Crown’s OTC portfolio and adds significant value across multiple categories,” said Jeff Bedard, Crown Laboratories President and CEO. “I am especially excited to bring the Stiefel brands to Crown as I personally enjoyed tremendous success in marketing them as a field sales representative for Stiefel in the 80’s and 90’s.”
“Facilitating the addition of these highly regarded brands reinforces Hildred’s commitment to work with Crown to build a diversified business with high quality product offerings across all aspects of dermatology and skin care,” added David Solomon, Partner of Hildred Capital Partners, LLC and Chairman of Crown Laboratories. “The addition of these brands provides meaningful diversification for our OTC portfolio and enhances our breadth of trusted consumer skin care therapies. We will continue to look for interesting opportunities to build on Crown’s consumer healthcare, aesthetic and prescription product lines.”
Crown Laboratories has chosen the Emerson Group to manage the sales activity and all logistics for the PanOxyl, Sarna, Zeasorb, Desenex, and Mineral Ice brands across all retailers. “We are extremely excited to partner with Crown Laboratories,” said Scott Emerson Chairman and CEO of the Emerson Group. “Crown’s management team, dermatology expertise and enhanced resources will serve the acquired brands well in a very attractive growth category for our retailers.”
Financial terms of the transaction were not disclosed. Lowenstein Sandler, LLP acted as legal advisor to Crown Laboratories and Hildred, while Hayfin Capital Management, LLP provided debt financing in connection with the transaction. Crosstree Capital Partners New York, LLC and Latham & Watkins (London) LLP served as financial and legal advisors, respectively, to GlaxoSmithKline.