H.I.G. Capital News

Welsh, Carson, Anderson & Stowe Acquires Majority Stake in Leiters, a 503B Outsourced Pharmaceutical Compounding Industry Leader, in Partnership with Leading Health Systems

WCAS, Intermountain Ventures, Novant Health, Rex Health Ventures, Spectrum Health Ventures and UNC Health join Leiters' existing investors, including Kaiser Permanente Ventures and Mayo Clinic

DENVER & NEW YORK – November 9, 2021 – Welsh, Carson, Anderson & Stowe (WCAS), a leading private equity firm focused exclusively on the healthcare and technology industries, announced today it has acquired a majority ownership stake in Leiters, a rapidly growing leader in the FDA-regulated 503B outsourced pharmaceutical compounding industry.

WCAS acquired its equity position in Leiters from the Company's existing investor group, which includes strategic health system partners Kaiser Permanente Ventures and Mayo Clinic and financial sponsors Frazier Healthcare Partners, SV Health Investors and H.I.G. BioHealth Partners. All the existing investors, including Kaiser Permanente Ventures and Mayo Clinic, have made significant reinvestments in the Company as part of this transaction. They are joined by Intermountain Ventures, Novant Health, Rex Health Ventures, Spectrum Health Ventures and UNC Health, who invested alongside WCAS in support of Leiters' growth strategy. The Company's health system investors, along with other industry leaders, will participate in a strategic advisory committee to support growth initiatives, continuous quality improvement, new product development and investments in enabling capabilities.

Leiters provides high-quality compounded sterile preparations across the continuum of healthcare to hospitals, surgery centers and physician offices. In 2014, Leiters registered with the FDA as a 503B outsourcer and has since undergone a significant transformation including: a new management team with extensive experience in pharmaceutical-grade sterile manufacturing; the completion of its state-of-the-art automated sterile manufacturing facility in Denver; and a significant broadening of its product portfolio into new categories. The Company is currently undergoing a significant facility expansion as part of the upcoming introduction of its new IV Solutions product line and offers an end-to-end suite of product types including pre-filled syringes, IV bags and concentrated vials; pain services including opioid free medications; pharmacy fill service for the ON-Q* Pain Relief System; and ophthalmic medications and services including, FDA-Compliant Repackaged Avastin®.

As part of an ongoing commitment to, and investment in, quality, compliance and manufacturing excellence, Leiters continues to invest in and deploy automation throughout its operation including automated syringe, IV bags and ON-Q* filling machines, as well as fully automated inspection, labeling and packaging capabilities. These investments exponentially increase capacity and ensure the continued delivery of high-quality medications to the healthcare market. In addition, Leiters is pursuing an additional facility to facilitate growth and expand capabilities for its customers.

Nick O'Leary, General Partner at WCAS, said, "We are very excited about our investment in Leiters. The Company is a leader in 503B outsourcing and is recognized as having one of the highest-quality operations in the industry, where quality and patient safety are paramount. Leiters represents a compelling opportunity for WCAS to leverage its capabilities in two areas where we have developed significant domain expertise: pharmaceutical services and successful collaboration with leading health systems. We are especially pleased about the opportunity to work in close partnership with some of the most forward-thinking health systems in the country as well as Leiters' CEO, Robin Smith Hoke, who is an exceptional leader."

Robin Smith Hoke, Leiters' President and Chief Executive Officer said, "We very much welcome WCAS as Leiters' majority investor. WCAS is one of the preeminent healthcare investors and we have full confidence that their team will bring a wealth of relevant experience as we continue to build for the future. Their expertise in healthcare and deep relationships throughout the industry will allow Leiters to continue its transformative path. I am thrilled about the momentum we have established in our business and look forward to driving our next chapter of growth. We will continue to focus on elevating industry standards and believe our relationship with WCAS and our health system partners will accelerate our growth and fuel innovation."

Cantor Fitzgerald & Co. served as financial advisor to Leiters in connection with the transaction.

About Leiters
Leiters is a trusted FDA-registered 503B outsourcing provider of high-quality hospital and ophthalmology compounded sterile preparations. It is committed to providing healthcare professionals and their patients with critically needed outsourced medications. Its team of experts in sterile pharmaceutical manufacturing, repackaging and compounding provide a sophisticated understanding of what it takes to elevate quality and consistency of supply in pharmaceutical outsourcing. Leiters combines a highly experienced team, with robust automated processes, in a state-of-the-art outsourcing facility, to ensure delivery of the highest quality medicines. All sterile preparations are produced under the Human Drug Outsourcing Facilities under 503B of the FD&C Act (503B Guidance) and follow Current Good Manufacturing Practices (cGMP). To learn more about how Leiters is Compounding Health™ please visit www.leiters.com.

About Welsh, Carson, Anderson & Stowe
WCAS is a leading U.S. private equity firm focused on two target industries: technology and healthcare. Since its founding in 1979, the firm's strategy has been to partner with outstanding management teams and build value for its investors through a combination of operational improvements, growth initiatives and strategic acquisitions. The firm has raised and managed funds totaling over $27 billion of committed capital. For more information, please visit www.wcas.com.

WCAS Contacts:
Jon Rather
212-893-9570
JRather@wcas.com

Greg Lau
212-893-9586
GLau@wcas.com

Leiters Contact:
Kari Cashmore
720-414-7216
Kari.Cashmore@Leiters.com

SOURCE Welsh, Carson, Anderson & Stowe
Related Links
https://www.wcas.com/