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BroadOak, RCT, and Farragut Acquire Particle Dynamics

9.29.2021

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.

About Particle Dynamics

Particle Dynamics creates functionally superior materials that enable customers’ products’ performance. Based in the USA with a twenty-year track record of innovation and market success, Particle Dynamics has a winning combination of technology know-how and a dynamic culture that emphasizes speed, flexibility, and solutions that drive customer satisfaction. Particle Dynamics is the supplier of choice for pharmaceutical, OTC, and nutraceutical companies. For more information, visit www.particledynamics.com.

About BroadOak Capital Partners

BroadOak Capital Partners, with headquarters in Washington, DC and San Francisco, is a life-sciences focused boutique financial institution that provides direct investment and investment banking services to companies in the research tools and consumables, diagnostics, biopharma services, and adjacent markets. BroadOak has led or participated in investments in more than 50 companies across multiple funds and investment vehicles. For more information, visit www.broadoak.com.

About Research Corporation Technologies

Research Corporation Technologies is a Tucson, Arizona based technology investment and management company that provides funding and development for promising life science and biomedical companies. RCT has assets of more than $500 million to advance technology and product development through flexible, long-term investment options. To learn more about RCT, see www.rctech.com.

About Farragut Capital Partners

Farragut Capital Partners is a private investment management firm providing junior debt and non-control equity capital to finance leveraged buyouts, generational transfers, growth capital financings, and recapitalizations. Farragut seeks to invest between $2 and $12 million in established middle-market companies with proven business models and consistent cash flows. For more information, please visit www.farragutcapitalpartners.com.

Contacts

Jen Gornet
Executive Coordinator
info@particledynamics.com