Enhanced Healthcare Partners and Bourne Partners Strategic Capital Announce Investment in Pharmaceutical Associates, Inc.

Backing will propel PAI’s market leadership position and help capitalize on growth opportunities

NEW YORK, NY (Nov. 6, 2019) — Enhanced Healthcare Partners (“EHP”), a leading New York-based private equity firm focused on investing in middle-market healthcare businesses, together with Bourne Partners Strategic Capital ("BPSC"), a pharma services and consumer healthcare-focused investment firm, announced the acquisition of Pharmaceutical Associates Inc. (“PAI” or the “Company”). A leader in liquid unit-dose, bottle prescription and over the counter medications, PAI will work with EHP and BPSC to expand its manufacturing capacity, product lines and market footprint.

With a deep commitment to quality, safety and productivity, PAI manufactures and markets generic liquid pharmaceuticals for hospitals, independent pharmacies, retail chains, long-term care facilities and government agencies. PAI has been at the forefront of innovative packaging solutions and was one of the first manufacturers to develop vertically integrated unit-dose packaging. Today, the Company offers a complete line of hard-to-find liquid products in both out-patient and unit-dose packaging. Unit-dose liquid packaging offers superior advantages to existing bulk bottle packaging including improved compliance, reduced medicine waste, increased efficiency and, ultimately, provides superior patient outcomes.

This partnership combines PAI’s innovation and market leadership with EHP’s track record of helping middle-market healthcare companies accelerate growth. The new investment from EHP and BPSC will provide PAI with access to strategic-level relationships, resources and growth capital that will position the Company for rapid market expansion.

“We realized we were at an important inflection point in our Company’s evolution and decided it was the right time to bring on financial partners that could help accelerate our growth,” said Kurt Orlofski, PAI CEO. “Choosing the right partner was a careful and deliberate process.  It was clear from the start that EHP’s knowledge and expertise would help propel our vision forward. In addition, BPSC was instrumental in helping orchestrate this transaction, and due to their deep network in the pharmaceutical space, will be a true value-add partner.  Together, we can accelerate our plans for expansion and innovation as well as attract the right talent to help grow our dynamic company. I’m truly proud to call EHP and BPSC our partners.”

Matt Thompson, EHP Partner, commented, “We are excited about the opportunity to help PAI continue to build their market leadership position in unit-dose liquid medicine by expanding its capacity, product line and overall capabilities. PAI is in an exciting position as it provides a win for patients, hospitals and the system by improving patient outcomes through accurate medication dispensing and reducing medication waste."

Minor Hinson, Chief Investment Officer at BPSC commented, “When we met with PAI's team and owners over a year ago, we knew we could partner with them to take PAI through its next phase of growth." Banks Bourne, Founder of BPSC also commented, "Along with family and management, we are confident that EHP is the right partner to help accomplish this goal."

ABOUT ENHANCED HEALTHCARE PARTNERS

Enhanced Healthcare Partners is a leading healthcare-focused private equity firm dedicated to making minority and majority investments in founder and entrepreneur-led lower middle-market companies. The EHP team has managed approximately $1 billion in equity capital and is comprised of professionals with deep healthcare, operations, consulting and investment management experience. The firm seeks to invest in companies between $50-$250 million in enterprise value, driving deep partnerships with management and founders to catalyze growth and build great organizations. For more information on EHP visit: www.enhancedhealthcare.com.

ABOUT PHARMACEUTICAL ASSOCIATES, INC.

Among North America’s leaders in quality, safety and productivity, Pharmaceutical Associates Inc. manufactures and markets generic liquid pharmaceuticals. PAI has been at the forefront of producing better-targeted suspensions, oral solutions, elixirs, syrups and liquids for nearly 50 years. To meet the unique needs of retail chains and independent pharmacies, hospitals, long-term care facilities and government agencies, PAI offers standard bottle packaging and ready-to-dispense packaging. In fact, PAI was the first independent manufacturer to develop vertically-integrated unit-dose (UD) packaging and the first to offer complete lines of hard-to-find liquid products in both out-patient and UD packaging. For more information on PAI visit:  www.paipharma.com

ABOUT BOURNE PARTNERS STRATEGIC CAPITAL

Bourne Partners Strategic Capital is an investment firm specifically focused in the pharmaceutical, pharma services, OTC and consumer health sectors and is an affiliate of Bourne Partners, an Investment Banking advisory firm specializing in the same core areas. Some of BPSC's active strategic investments include Covis Pharma, Millicent Pharma, iNova Pharma, AMRI, Novitium Pharma and WellDyneRx.  As owners and operators with over 20 years of experience, Bourne Partners Strategic Capital strives to generate compelling returns to its investors by being a value-added investment partner in its core focus sectors, ensuring alignment among investors and management, and by working hand-in-hand with management and all stakeholders to grow business value over the long term. For more information, please visit www.bourne-partners.com.

FOR PRESS INQUIRIES

Joanne Verkuilen

MiddleM Creative, on behalf of Enhanced Healthcare Partners
joanne@middlemcreative.com
T 980.785.4356