RoundTable Healthcare Partners Announces Sale of Tower Holdings, Inc. and Lineage Therapeutics Inc. to Impax Laboratories, Inc.

Sale Includes Operating Subsidiaries CorePharma LLC and Amedra Pharmaceuticals LLC

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Oct 09, 2014, 12:11 ET

LAKE FOREST, Ill., Oct. 9, 2014 /PRNewswire/ -- RoundTable Healthcare Partners ("RoundTable"), an operating-oriented private equity firm focused exclusively on the healthcare industry, announced today that it has entered into a definitive agreement to sell Tower Holdings, Inc. ("Tower"), including operating subsidiaries CorePharma LLC ("CorePharma") and Amedra Pharmaceuticals LLC ("Amedra") and Lineage Therapeutics Inc. ("Lineage") (together, the "Companies") to Impax Laboratories Inc. ("Impax"), a leading, technology-based specialty pharmaceutical company, for $700 million in cash. The closing is conditional on regulatory approval and other customary closing conditions.

CorePharma, based in Middlesex, NJ, along with its affiliated companies, Amedra and Lineage, based in Horsham, PA, is a fully integrated pharmaceutical company focused on the development, manufacture and commercialization of complex branded and generic pharmaceutical products with high barriers to entry. The Companies specialize in high value generic formulations including extended-release, delayed-release and DEA controlled substances and the marketing of niche brands including Albenza®, Dexedrine®, Daraprim®, Adrenaclick® epinephrine autoinjector and its authorized generic. RoundTable acquired a majority interest in CorePharma in August 2005.

"Tower's management team, led by Chief Executive Officer, Christopher J. Worrell, did a tremendous job of growing the company's revenue and profitability and expanding its product portfolio, while simultaneously solidifying its manufacturing, quality and regulatory operations," said Jack McGinley, a Founding Partner of RoundTable and Chairman of the Boards of Tower and Lineage. "We believe that Impax will be an excellent strategic partner to help the Companies achieve their next phase of growth."

Christopher Worrell added, "RoundTable has been an exceptional partner for Tower and Lineage. They have supported strategic investments across all aspects of our operations and provided significant capital and transaction assistance for strategic acquisitions and product pipeline development."

The sale of Tower and Lineage marks the fifth portfolio realization for RoundTable's $500 million equity Fund II, which closed in March 2005. Credit Suisse Securities (USA) LLC acted as exclusive financial advisor to Tower Holdings, Inc. and Lineage Therapeutics Inc., and Sidley Austin LLP acted as exclusive legal advisor to RoundTable in this transaction.

About RoundTable Healthcare Partners

RoundTable Healthcare Partners, Lake Forest, IL, is an operating-oriented private equity firm focused exclusively on the healthcare industry. RoundTable partners with companies that can benefit from its extensive industry relationships and proven operating and transaction expertise. RoundTable has established a successful track record of working with owner/founders, family companies, management teams, entrepreneurs and corporate partners who share a vision and believe in the value creation potential of its partnership model. RoundTable currently manages $1.9 billion in capital, including three equity funds totaling $1.5 billion and two subordinated debt funds totaling $400 million. More information about RoundTable Healthcare Partners can be found at www.roundtablehp.com.

SOURCE RoundTable Healthcare Partners