RoundTable Healthcare Partners, an operating-oriented private equity firm focused exclusively on the healthcare industry, has made an investment in Deerland Enzymes & Probiotics. Financial terms of the transaction were not disclosed.
 
Deerland Enzymes & Probiotics is a developer, formulator, and manufacturer of enzyme- and probiotic-based dietary supplements. The company is based in Kennesaw, Georgia, where it operates two state-of-the-art manufacturing facilities, including a new, 30,000 square foot probiotic facility that opened in October 2016. Deerland specializes in customized product formulations and offers a line of clinically-studied branded ingredients, including its probiotic, DE111, which recently earned Non-GMO Project verification and Health Canada approval. The company also offers multiple branded enzymes, including its innovative Glutalytic and ProHydrolase products. Deerland’s Chief Executive Officer, Scott Ravech, and the existing senior management team will continue to lead the company as it enters its next phase of growth.
 
“We are very excited to partner with Scott, the Deerland management team, and Deerland’s existing shareholder,” said Pierre Fréchette, senior operating partner at RoundTable and chairman of Deerland’s board. “The team has built a market-leading, high-quality operation with significant capacity for future growth. We look forward to partnering with and investing in Deerland to expand their product and manufacturing capabilities to better serve their customers.”
 
“Deerland has a unique position in the rapidly-growing probiotic and enzyme markets,” added David J. Koo, senior partner at RoundTable. “Our familiarity with the nutritional supplements industry, and experience with contract development and manufacturing organizations, will help us play a value-added role in supporting the growth of Deerland.”
 
Paul Murtagh, outgoing chairman of Deerland, commented, “RoundTable is an ideal partner for Deerland. The firm’s combination of operating and transaction expertise will be instrumental as we continue to strategically build our business. This investment allows Deerland to further differentiate itself as a market leader.”
 
Mr. Ravech said, “Our entire team has achieved great success over the past several years, including the opening of Deerland’s flagship probiotic facility. I am confident that our new partnership with RoundTable will lead to even stronger opportunities for the Company going forward.”  
 
RoundTable’s investment strategy targets companies in the healthcare industry that fall within the expertise and experience of the firm’s operating and transaction principals. Deerland is the fourth investment from RoundTable’s $650 million Fund IV. As part of the transaction and to finance further growth opportunities for the company, RoundTable facilitated the successful completion of new senior credit facilities and a private placement of senior subordinated notes. The senior credit facilities were led by Capital One Healthcare and included The PrivateBank, while the senior subordinated notes were provided by RoundTable Capital Partners III, RoundTable’s third captive subordinated debt fund. Sidley Austin LLP acted as exclusive legal advisor to RoundTable in this transaction. Preti Flaherty Beliveau & Pachios LLP and McCann Fitzgerald acted as legal advisors to Deerland and its shareholder.