Hildred Capital Management, LLC, Bourne Partners Strategic Capital and The Emerson Group Launch Carlin Consumer Health
February 1, 2022
Acquires ZEGERID OTC® for Heartburn Treatment from Bayer
Well-Capitalized OTC Platform to Acquire and Grow OTC Brands
New York, NY, Charlotte, NC and Wayne, PA – February 1, 2022 – Healthcare private equity firms Hildred Capital Management, LLC (“Hildred”) and Bourne Partners Strategic Capital (“Bourne”), together with The Emerson Group (“Emerson”), launch Carlin Consumer Health (“Carlin”) to establish a preeminent consumer health business and to acquire leading over-the-counter (“OTC”) brands. Carlin will be uniquely positioned to acquire and commercialize well-established brands as well as support its retail partners and their customers.
OTC 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 today announced the acquisition of Zegerid OTC® (“Zegerid”) from Bayer AG (“Bayer”). Zegerid is an OTC 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 OTC 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.”
“Carlin Consumer Health represents the second phase of our partnership with Scott Emerson and The Emerson Group on the Daybreak Consumer Care platform. We are excited to partner with Emerson and Hildred to launch Carlin and eager to see the company grow over the long term” said CEO, Banks Bourne.
“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.
About Hildred Capital Management, LLC
Hildred is a New York-based private equity investment firm that pursues growth equity investments in middle market healthcare companies with leading products, technologies and services. Hildred invests in companies with revenues of up to $100 million and creates value from pursuing organic growth strategies, driving effective resource allocation, implementing operational improvements, generating business development, and supporting best-in-class management teams.
Areas with attractive fundamentals where Hildred may invest include the following healthcare subsectors: healthcare services, consumer products, information technology, medical devices, life science tools and diagnostics, healthcare related development and manufacturing, and pharmaceuticals, as well as related businesses that impact these healthcare subsectors. For more information, please visit www.hildredcapital.com.
About Bourne Partners Strategic Capital
Headquartered in Charlotte, NC, Bourne Partners is a financial services firm specializing in the pharma, pharma services, OTC, and consumer health sectors. The firm offers investment banking and advisory services, and through Bourne Partners Strategic Capital (“BPSC”) sources and executes direct private equity investment transactions in Bourne’s key focus areas. As owners and operators with over 20 years of experience, BPSC has investment, strategic, and operational experience in companies ranging from $10mm to $3bn in equity value. In some companies, BPSC was the sole equity investor. In larger platforms including Covis Pharma, Millicent Pharma and PAI, BPSC partnered with Cerberus Capital Management, The Carlyle Group and Enhanced Healthcare, respectively.
BPSC employees and partners invest a substantial amount of personal capital into each transaction to ensure true alignment of interests between investors, management and other stakeholders. BPSC seeks to add value to its partner companies and fund investments by applying its network of strategic relationships (both private equity and industry relationships), advisory and consulting expertise, and operating experience to generate a positive outcome for management, employees, and investors. For more information, please visit www.bourne-partners.com/strategic-capital.
About The Emerson Group
The Emerson Group is a consumer products equity organization singularly focused on brands reaching maximum potential that connect over-the-counter health and beauty brands to loyal shoppers. The Emerson Group specializes in strategic planning, category assessments, due diligence, acquisition, and feasibility studies. The Emerson Group also provides the efficient logistics infrastructure necessary to build brands and offers data and shopper insights for making connections between brands and their target consumers. The Emerson Group leads the industry as a retail partner of choice and provides advanced analytical tools and research for proprietary insights.
With over 25 years of experience, The Emerson Group is able to identify opportunities and activate plans that improve sales fundamentals and brand performance. The company was founded in 1995 and is based in Wayne, Pennsylvania. The Emerson Group has long-standing connections to a strong voice with major and regional retailers and is able to provide expertise, competency, and leadership in sales and support to retail partners and clients. They ensure OTC health and beauty brands are given the attention they deserve. For more information, please visit www.emersongroup.com.
For Carlin Consumer Health:
For Hildred Capital Management, LLC:
Reevemark Hugh Burns/Pamela Greene 212-433-4600
For Bourne Partners Strategic Capital:
Calli Lewis 704-552-8407 x 2232
For Emerson Group: