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BroadOak Leads Acquisition of Particle Dynamics

An investor group led by BroadOak Capital Partners acquired Particle Dynamics from Edgewater Capital Partners. Particle Dynamics is a global leader in particle processing, delivery technologies, and finished dose manufacturing for the pharmaceutical, over-the-counter, and nutraceutical markets.

The full press release is below.

Particle Dynamics Announces Sale to New Ownership Group Led by BroadOak Capital Partners

Leveraging the industry expertise and capital of its new ownership group, Particle Dynamics, a global leader in particle processing with a fully integrated product portfolio, prepares for its next phase of growth in the global healthcare industry.

ST. LOUIS–(BUSINESS WIRE)–Particle Dynamics, a global leader in particle processing, delivery technologies, and finished dose manufacturing for pharmaceutical, over-the-counter (“OTC”), and nutraceutical companies, has sold from Edgewater Capital Partners to a new ownership group led by BroadOak Capital Partners (“BroadOak”). The new ownership group comprises BroadOak, Research Corporation Technologies (“RCT”), and Farragut Capital Partners (“Farragut”); BroadOak and Farragut provided subordinated debt to Particle Dynamics in 2019 as part of a recapitalization.

“Over the years we have worked with them, the team at Particle Dynamics has made great progress. We are excited to make a substantially larger investment in partnership with management as they continue to deliver customized solutions to a growing customer base,” said Bill Snider, Partner, BroadOak.

Particle Dynamics combines deep particle processing and delivery technology expertise to provide the global healthcare industry functionally superior products and custom manufacturing services in US-based GMP, FDA inspected facilities. The key capabilities include: Polysaccharide Iron Complex (PIC) API manufacturing, Spray Drying, Complex Granulation, Microencapsulation, and Finished Dosage Forms, all supported by an Innovation Center.

“I’m proud of the progress made since 2018 where the customer is in the middle of our business model. The new group led by BroadOak Capital Partners is ideal to accelerate the growth of our company based on our vision to be a partner of choice recognized for our technologies and our people. I’m Impressed by their industry expertise and their tremendous network.” said Nicolas Fortin, CEO, Particle Dynamics.

“I’m very excited to oversee this new chapter in Particle Dynamics’ strategic trajectory,” said Derek Hennecke, who was named Chairman of the Board of Directors in 2018. “For the past two years, the Board has been hard at work restructuring the company to better serve customers. With this new ownership, I’m already seeing a fresh influx of new ideas that will make the company even more customer-driven.” Prior to being named Chairman, Derek served as a member of the Board for seven years. He brings more than 30 years of experience in the CMO industry, including building and selling his own CDMO, Xcelience, in 2016.

Pillsbury Winthrop Shaw Pittman LLP acted as legal counsel to the buyer group. Fairmount Partners acted as exclusive financial advisor to Particle Dynamics. Taft Stettinius & Hollister LLP acted as legal counsel to Particle Dynamics. First Merchants Bank provided senior debt financing for the acquisition.

Original Press Release