bottles on production line

EOM Stories

Phoenix Scientific, Inc. Acquired By Leonard Green & Partners, L.P.

Overview

Founded in 1991, Phoenix Scientific (“PSI”) is the leading developer and supplier of generic pharmaceutical products to the U.S. animal health industry. With strong demographics and a market shift away from the large branded pharmaceuticals, PSI is poised to become a much larger player in the animal health arena.

Bigelow Assignment

Find a partner with the resources to help the company to the next level of its evolutionary growth while maintaining Phoenix Scientific’s corporate culture and identity. In addition, Bigelow had to satisfy the diverse financial and personal objectives of five major outside shareholders in addition to the existing management team.

Challenges

Bigelow arranged a full recapitalization of the ownership, which allowed existing shareholders the choice of cashing out partially or in total, at a premium valuation that exceeded their expectations. The related financings and resulting capital structure provided ample flexibility and reserves to support management’s growth business plan.

“Going through this process was a very difficult personal experience. Bigelow understood my desire to keep the company intact and protect our employees, yet they also were able to satisfy each of our Board member’s financial objectives. The valuation we got was directly related to Bigelow’s ability to focus and present the company’s story.” Kevin M. Schinze, CEO Phoenix Scientific, Inc.
puppy and vet
“The Bigelow principals are extremely down to earth – bright, aggressive, level headed. We also sensed that they were fun guys and we felt comfortable with the prospect of working closely with them on a project that was complex both emotionally and financially.” Gerald L. Wasleski, VP Finance Phoenix Scientific, Inc.

Outcome

Leonard Green’s substantial capital resources and prior investment experience in several other leading animal health companies make them the optimal partner.