Crown Laboratories Acquires Bellus Medical

Hildred Capital Portfolio Company Establishes Aesthetics Division with Innovative, Non-Invasive Product Line

JOHNSON CITY, Tenn. & ADDISON, Texas--()--Crown Laboratories, Inc. (“Crown Laboratories”), a leading, fully integrated, specialty pharmaceutical company and Hildred Capital Partners LLC (“Hildred”) portfolio company, today announced it has acquired Bellus Medical, a leader in medical aesthetics treatments dedicated to delivering innovative repair and restoration products to aesthetic practices around the world.

Bellus’s non-invasive products give it a unique position in aesthetics, providing a range of products that draw first-time consumers to leading physician-directed practices globally. Most notable among its products is the SkinPen® – a medical grade microneedling device used exclusively by healthcare professionals to improve the appearance of facial acne scars – the first microneedling device in the industry to be granted clearance and marketing authorization by the U.S. Food and Drug Administration (FDA) for this indication. Bellus’s full line of innovative products and devices includes:

  • SkinPen®: the first ever FDA-cleared microneedling device for the treatment of acne scarring
  • Skinfuse: post-microneedling protocol
  • Allumera: light-activated cream
  • ProGenTM / RegenLab: platelet-rich plasma systems

Bellus Medical will become the new Aesthetics Division of Crown Laboratories and be renamed Bellus Aesthetics. Bellus will continue to be based in Dallas, Texas and operate as a wholly-owned subsidiary of Crown Laboratories. Bellus CEO Joe Proctor will become President of Crown’s Aesthetics Division and join the Crown Board of Directors.

“Partnering with Bellus is a truly exciting and significant first step in building our Aesthetics Division,” said Jeff Bedard, Crown Laboratories President and CEO. “Bellus has assembled a truly impressive team with an enviable track record of innovation in aesthetics, exemplified by the SkinPen®, the first ever FDA-cleared microneedling device for acne scarring. We believe there is a tremendous opportunity for us in aesthetics, and with Bellus as the cornerstone of our new division, we expect to expand our portfolio meaningfully in the years ahead.”

“We are thrilled to have found such a compelling opportunity with a partner that shares our vision and approach to growing the business and improving patient outcomes,” said Joe Proctor, Bellus Medical CEO. “The Crown Labs organization is culturally compatible and brings us the additional resources we need to expand our infrastructure, support future growth, and better serve our valued network of providers. This transaction represents a unique opportunity to build Bellus into an elite aesthetics company and we look forward to joining with our new colleagues and to building the Crown aesthetics franchise.”

“On behalf of Hildred, I am delighted to work with Crown on launching its new Aesthetics Division and to welcome Joe and his colleagues to the team,” said David Solomon, Hildred Partner and Chairman of the Board for Crown Laboratories. “With its unique market position and portfolio, led by the first ever recognized Class II microneedling device, Bellus represents an exciting opportunity for Crown, complements its current skincare offering and expands its potential to grow and drive future consolidation. We will continue to look for distinct and attractive opportunities to build on Crown’s consumer healthcare and prescription product lines – and now its aesthetic product line – with the launch of this new division.”

Financial terms of the transaction were not disclosed. Lowenstein Sandler, LLP acted as legal advisor to Crown Laboratories and Hildred, while Hayfin Capital Management, LLP provided debt financing in connection with the transaction. Piper Jaffray and Perkins Coie served as financial and legal advisors, respectively, to Bellus Medical.

Earlier this month, Montreux Equity Partners completed a growth capital financing in Crown Laboratories out of its new healthcare growth capital fund, Montreux Growth Partners II, L.P. With the financing, Crown continues to broaden its distribution across existing channels, and add new product lines to support its growth as a leading player focused on dermatology.

About Crown Laboratories, Inc.

Crown Laboratories, Inc. is a privately held, fully integrated, specialty pharmaceutical company, focused in dermatology and committed to developing and providing a diverse portfolio of pharmaceutical and consumer products, which improve the quality of life for its customers. Crown Laboratories is an innovative company, whose Blue Lizard Australian sunscreen, Vita Liberata organic sunless tanning and skincare, and robust portfolio of dermatological products have paved the way for Crown Laboratories’ rapid growth. Crown Laboratories’ prescription portfolio includes key branded products AlaScalp, AlaQuin and Tri-Derm. For more information about Crown Laboratories or its products, visit www.crownlaboratories.com.

About Hildred Capital Partners

Hildred Capital Partners, LLC is a private investment firm that invests in a broad range of securities, including equity and debt, across geographies and sectors, on both an actively and passively managed basis. Founded in 2014, Hildred has a particular interest in private equity, including situations where the principals can apply their extensive management experience to help a company reach its full potential. Hildred is headed by Howard Solomon, former CEO of Forest Laboratories, and David Solomon, former Senior Vice President, Corporate Development & Strategic Planning at Forest Laboratories, together with Andrew Goldman, the firm’s Chief Investment Officer.

About Bellus Medical

Bellus Medical, headquartered in Addison, TX, is an industry leader in medical aesthetics with an unmatched reputation of providing the highest levels of safe and effective products and the most innovative technology on the market. Founded in 2012, Bellus quickly became an industry pioneer with the introduction of its flagship product SkinPen®, a state-of-the-art microneedling device, which was the first ever FDA-cleared medical grade microneedling device on the market. Bellus' product portfolio continually expands with unique and differentiated products developed to enhance the patient experience and represent a significant business opportunity for medical practices. Built upon three guiding principles - technology, education and customer service - Bellus is much more than a supplier to aesthetic practices, it is a trusted business partner. To learn more about Bellus Medical, visit www.BellusMedical.com.

About Montreux Equity Partners

Montreux Equity Partners is dedicated to making growth capital investments in high growth, category-leading companies with products, technologies and services that are advancing health. Founded in 1993, Montreux has invested in more than 60 companies, including MINDBODY (Nasdaq:MB), Glaukos (NYSE:GKOS), Tobira Therapeutics (acquired by Allergan), MAKO Surgical (acquired by Stryker), SkinMedica (acquired by Allergan) and Renal CarePartners (acquired by Ambulatory Services of America). Montreux is based in San Francisco, CA, and is currently investing out of its second healthcare growth capital fund, Montreux Growth Partners II, L.P. For more information about Montreux Equity Partners, visit www.mepvc.com.

Forward Looking Statements

In this press release, the use of words such as "expect," "anticipate," "possible," "potential," "believe," "commit," "intend," "continue," "may," "would," "could," "should," or similar expressions is intended to identify forward-looking statements that represent Crown Laboratories management’s current judgment about possible future events. We believe these judgments are reasonable, but these statements are not guarantees of any events or results, and actual results may differ materially due to a variety of important factors. Such risks and uncertainties may include, but are not limited to: the satisfaction of closing conditions to the investment by Hildred; the possibility that the transaction will not be completed or, if completed, not completed in the expected timeframe; the potential that the expected benefits and opportunities of the transaction may not be realized or may take longer to realize than expected; and adverse litigation or government action. Crown Laboratories undertakes no obligation to update the information contained in this release.

Contacts

For Crown Laboratories:
Libby Erwin, 423-630-2269
lerwin@crownlaboratories.com
or
For Hildred:
Reevemark
Hugh Burns/Molly Curry, 212-433-4600

Contacts

For Crown Laboratories:
Libby Erwin, 423-630-2269
lerwin@crownlaboratories.com
or
For Hildred:
Reevemark
Hugh Burns/Molly Curry, 212-433-4600