An investor group led by Edgewater Capital Partners has acquired Particle Dynamics (PDI), a former subsidiary of KV Pharmaceuticals. PDI develops and globally markets specialty ingredient product lines for the pharmaceutical, nutritional, food, and personal-care industries. Its products include value-added pharmaceutical, vitamin, mineral, herbal, and specialty products that provide benefits such as improved taste, enhanced product stability, or more efficient manufacturing.
Edgewater believes the acquisition of PDI demonstrates their enthusiasm to acquire in the pharmaceutical space due to its high barriers, defensibility, and fragmented market. Moreover, their ability to overcome tough due diligence issues, which included regulatory, market, customer, and product validation risks, not to mention concerns about the feasibility of building out stand-alone operations, stands as a testament to their commitment to transactions that the firm finds highly attractive within their investment criteria. In addition, Edgewater’s confidence in this transaction was only solidified by their ability to partner with the right management team- Paul Brady, formerly the President of PDI and the VP of Corporate Development for all of KV agreed only with Edgewater to leave KV in order to become the CEO of PDI in the post-transaction enterprise. Lastly, this transaction was much larger than ECP II could do alone, but Edgewater utilized their LPs as co-investors and partnered with subordinated debt firms with which Edgewater has long standing relationships.
Edgewater Capital is a private equity firm focused on the acquisition of lower middle market, specialty materials companies, defined as specialty chemicals, pharmaceuticals, and specialty substrates. They are value-added investors, who take pride in providing more to their portfolio companies that just capital. Moreover, Edgewater grows companies into market leaders within their respective niches through a commitment of deep relationships with management and a strong fundamental knowledge of target industries. To support their investing thesis, Edgewater has developed an extensive team of highly talented Operating Partners that are instrumental to our companies’ success, bringing tangible, pertinent industry experience often in the form of relevant, forward-thinking strategic guidance.