Transaction overview
An affiliate of New Water Capital L.P., a private equity firm based in Boca Raton, Florida, acquired Trillium Health Care Products on August 21, 2018. The deal involved the purchase of 100% ownership stake in Trillium, although the financial terms were not disclosed publicly at the time. Trillium is a contract manufacturer of over-the-counter (OTC) pharmaceutical products for leading global companies and operates from its headquarters in Brockville, Ontario.
Deal structure and financing
The acquisition was led by New Water Capital L.P., with legal advice provided by Stikeman Elliot and Kirkland & Ellis on the buy-side. Lincoln International acted as the exclusive financial advisor to Trillium Health Care Products during the transaction process. Specific details regarding equity and debt components, leverage metrics, or any seller-retained stake were not disclosed. Given New Water's typical investment strategy in lower-middle market companies with revenues ranging from $30 million to $300 million, it is likely that a moderate amount of debt was involved as part of the financing structure for this acquisition.
Strategic context
The rationale behind New Water Capital's move to acquire Trillium Health Care Products stems from the growing demand in the OTC pharmaceutical sector. The deal aims to expand capacity and support existing customers by leveraging Trillium’s expertise in quality control, technical proficiency across various dosage forms, and its reputation as a preferred partner for major pharmaceutical brands. For Trillium, divesting to New Water Capital offers an opportunity to enhance facilities, capabilities, and personnel through the financial backing of a private equity firm with experience in supporting companies that operate within regulated environments.
Regulatory path
The acquisition was reviewed by relevant regulatory bodies, primarily focused on competition law compliance given its impact on the healthcare sector. However, specific details about antitrust remedies or filings made under the Hart-Scott-Rodino Act (HSR) in the United States were not provided publicly. Given Trillium's operations in Ontario and New Water Capital’s focus on U.S.-based transactions, it is likely that the deal was scrutinized by both Canadian and American regulatory authorities to ensure adherence with local competition laws.
The timeline for regulatory approval and any subsequent remedies required have not been disclosed in public records, but such processes typically span several months from initial filing to clearance. Given the nature of Trillium’s business, the emphasis would likely be on demonstrating that the acquisition does not substantially reduce competition or harm consumer welfare within the contract manufacturing segment of OTC pharmaceuticals.