Avista Capital Partners’ Acquisition of Extended Topicals and Dermatology Business of G&W Laboratories

Avista’s legal advisor is Ropes & Gray LLP. G&W Labs’ financial advisor is J.P. Morgan Securities LLC. Its legal advisor is Reed Smith LLP.

Avista Capital Partners, a leading private equity firm focused on growth-oriented healthcare businesses, and G&W Laboratories, Inc. signed a definitive agreement for Avista to acquire G&W Labs’ extended topicals and dermatology business unit. The transaction does not involve G&W Labs’ other businesses, including investments to drive efficiency in the pharmaceutical value chain and contract manufacturing operations in Sellersville, PA and Lincolnton, NC.

G&W Dermatology has a market-leading and diversified portfolio of approximately 35 self-labeled generic topical dermatology products that are currently marketed and sold in the U.S. In addition, the Company maintains partnership arrangements on a number of products and is a contract manufacturer for select products owned by other pharmaceutical companies. G&W Dermatology has a high-quality manufacturing facility with capabilities in suppository, cream, ointment, liquid, and gel development. In addition, the Company has a well-established R&D team and an active pipeline in various stages of development.

Walt Kaczmarek, an experienced generic pharmaceuticals executive, will become the Chief Executive Officer of G&W Dermatology upon the close of the transaction. Mr. Kaczmarek has more than 25 years of management experience in the pharmaceutical industry, spanning the value chain from development to manufacturing to sales and marketing. Most recently, he served as Chief Operating Officer of Aceto. Prior to Aceto, he held leadership roles at Mallinckrodt Pharmaceuticals, Fougera Pharmaceuticals, and Nycomed. Fougera and Nycomed were both Avista portfolio companies.

The Ropes & Gray team representing Avista was led by private equity partner David Blittner (Picture), benefits partners Allie Alperovich and Danna Kivell, life sciences partner Kellie Combs, health care partner Debbie Gersh and tax partner Leo Arnaboldi.

Involved fees earner: Allie Alperovich – Ropes & Gray; Leo Arnaboldi – Ropes & Gray; David Blittner – Ropes & Gray; Kellie Combs – Ropes & Gray; Deborah Gersh – Ropes & Gray; Danna Kivell – Ropes & Gray;

Law Firms: Ropes & Gray;

Clients: Avista Capital Partners;

Author: Ambrogio Visconti