bottles on production line

Transaction Experiences

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

Phoenix Scientific has successfully developed and manufactures the broadest line of FDA-approved private label pharmaceutical products for food animal, companion pet, and equine applications in the United States.  Phoenix has the most extensive range of in-house manufacturing capabilities available for private label pharmaceutical production in the industry.  It has received the most Abbreviated New Animal Drug Application (ANADA) approvals from the Food and Drug Administration since it began operations in 1991.

LG&P

With over $2 billion under management, Leonard Green & Partners is regarded as one of the leading private equity firms in the United States.  Leonard Green proactively makes controlling ownership acquisitions of established, middle market companies across a range of industries, with a preference for consumer-oriented businesses or companies exploiting compelling demographic trends.  The firm has been an active investor in the animal health industry through its successful investments in Petco Animal Supplies (NASDAQ: PETC), a large chain of pet superstores in the U.S., and VCA/Antech (NASDAQ: WOOF), a leading chain of veterinary clinics and associated laboratories.

Phoenix Scientific, Inc., the leading developer and supplier of generic pharmaceutical products to the U.S. animal health industry, recently announced the sale of a controlling equity interest in it to an affiliate of Leonard Green & Partners L.P., a prominent private equity investment firm based in Los Angeles.  The equity was provided by Leonard Green & Partners and the management team of Phoenix.  Trust Company of the West, The Goldman Sachs Group, and Wells Fargo Bank provided the debt financing.

“Partnering with Leonard Green equips Phoenix with strong strategic and financial resources of arguably the most experienced institutional investor in the animal health industry today. They share our view of the transformation of the animal health industry, and will aid us in accelerating our business plan to take advantage of Phoenix’s leading market position in the development and manufacture of private label animal health pharmaceuticals.” Kevin M. Schinze, Chairman, President & CEO Phoenix Scientific, Inc.

This transaction is the culmination of an initiative led by Bigelow LLC to provide a value-maximizing liquidity event for certain shareholders who desired to monetize their investment in Phoenix Scientific, Inc., while also appropriately recapitalizing the Company for accelerated growth moving forward.

“Following closely on the heels of the successful J.A. Webster divestiture that we completed last year, this transaction validates the compelling investment opportunities brought about by the changing drivers of value in the animal health industry. We believe that this trend has long legs” David C. Linton Bigelow LLC

St. Joseph, Missouri

has been acquired by

Los Angeles, California

The undersigned acted as M+A advisor to Phoenix Scientific, Inc.