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PNC Bank, Tecum invest in private label producer/packager of over-the-counter remedies

By Patty Tascarella, Senior Reporter, Pittsburgh Business Times

Two Pittsburgh companies invested in a Long Island-based developer and distributor of private label over-the-counter pharmaceutical products for big-box retailers. PNC Bank and Tecum Capital Partners were part of an investor group that also included NewSpring Capital and Leedon Park Capital that provided a growth capital injection to Spirit Pharmaceuticals LLC of Ronkonkoma, New York.

Terms were not disclosed.

Tecum said NewSpring reached out to discuss the opportunity.

“We really like the industry,” said Stephen Gurgovits Jr., Tecum managing partner. “We believe there is a huge opportunity to expand into big-box retail and our company is able to secure higher-quality and cheaper key ingredients on generics, which is areal value-added proposition.”

Established in 2003, Spirit Pharmaceuticals is a family business that has transitioned from a supplier of bulk finished pharmaceutical products to a leading turnkey provider of private label solutions for large, big-box retailers, medical distributors, insurance companies, group purchasing organizations and ecommerce businesses. Products include analgesics, cold and cough remedies, allergy medication and digestive medicines and more. Growing consumer preference for private label options is fueling demand, and Spirit Pharmaceuticals has expanded into two additional facilities, supporting 11 packaging lines.

PNC Bank, Pittsburgh’s biggest bank and part of PNC Financial Services Group Inc., said it typically doesn’t comment on deals.

“We have done a few deals in the past with PNC, but it has been quite a while since we were in a deal together,” Gurgovits said.

Tecum is No. 4 among the region’s largest private equity firms, as ranked by assets under management, which was $750 million, according to the list published by the Pittsburgh Business Times on April 16. It is based in Wexford.

Leedon Park Capital is based in Charlotte, North Carolina. NewSpring is based in Radnor, Pennsylvania.