CROWN LABORATORIES ACQUIRES SELECT CONSUMER HEALTHCARE BRANDS FROM GLAXOSMITHKLINE
Hildred Capital Portfolio Company Enhances OTC Skin Care Product Offerings
November 30, 2018– Johnson City, TN– 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:
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.
About Crown Laboratories, Inc.
Crown Laboratories, Inc. is a privately held, fully integrated global skin care company. Crown Laboratories is committed to developing and providing a diverse portfolio of beauty, consumer, OTC, prescription, medical and aesthetic skin care products that improve the quality of life for its customers. In addition, Crown Laboratories also provides pharmaceutical development and contract manufacturing services for a host of partners world-wide. As an innovative company with key products such as its recently acquired, first FDA-cleared medical grade microneedling device, SkinPen, Blue Lizard Australian Sunscreen, Vita Liberata sunless tanning and skin care, and robust portfolio of Rx and OTC products, Crown Laboratories has enjoyed rapid growth and is poised to become a leader in Dermatology. Crown Laboratories has been listed on the Inc. 5000 Fastest Growing Companies List for six consecutive years. For more information about Crown Laboratories or its products, visit www.crownlaboratories.com.
About Hildred Capital Partners
Hildred Capital Partners, LLC is a private investment firm that invests in a broad range of securities, including equity and debt, across geographies and sectors, on both an actively and passively managed basis. Founded in 2014, Hildred has a particular interest in private equity, including situations where the principals can apply their extensive management experience to help a company reach its full potential. Hildred is headed by Howard Solomon, former CEO of Forest Laboratories, and David Solomon, former Senior Vice President, Corporate Development & Strategic Planning at Forest Laboratories, together with Andrew Goldman, the firm’s Chief Investment Officer.
About The Emerson Group
The Emerson Group has been facilitating transition to the changing consumer retail economy for over 20 years. With a field sales infrastructure of 10 regional offices, Emerson manages CPG brands in excess of $3.8 billion, and holds equity positions with small and medium-size brands. It also operates internationally, providing partners in the European, South American and Asian Pacific regions with the expertise and infrastructure necessary to successfully operate in the U.S. market.
The company offers clients unparalleled retail relationships, advanced turnkey logistics, comprehensive marketplace analytics, and access to equity markets. Emerson Logistics, the #5 HBC supplier to the trade, is an efficient turnkey logistics solution, delivering on-time and complete shipments, single purchase orders for multiple products, single point of contact for multiple vendors, and reduced processing costs. Emerson Marketing partners with industry-leading experts to leverage data and shopper insights for clients, with up-to-the-minute category and brand information.
The Emerson organization’s resources and expertise has been expanded into Canada with our recent merger with McCaughey Consumer Products Management, Inc., a leading Canadian sales organization offering national account management, brand management, inventory management, accounts receivable and quality control. To learn more visit www.emersongroup.com.
Forward Looking Statements
In this press release, the use of words such as “expect,” “anticipate,” “possible,” “potential,” “believe,” “commit,” “intend,” “continue,” “may,” “would,” “could,” “should,” or similar expressions is intended to identify forward-looking statements that represent Crown Laboratories management’s current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or results, and actual results may differ materially due to a variety of important factors. Such risks and uncertainties may include, but are not limited to: the satisfaction of closing conditions to the investment by Hildred; the possibility that the transaction will not be completed or, if completed, not completed in the expected timeframe; the potential that the expected benefits and opportunities of the transaction may not be realized or may take longer to realize than expected; and adverse litigation or government action. Crown Laboratories undertakes no obligation to update the information contained in this release.