Press release

New York, US; 9 December 2020

Partners Group, the global private markets investment manager, has agreed to acquire leading US animal-health compounding pharmacy business Wedgewood Pharmacy ("Wedgewood" or "the Company"), on behalf of its clients, from New Harbor Capital.

Founded in 1980, Wedgewood is one of the largest providers of compounded animal medications for acute and chronic conditions in the US and employs more than 700 people in New Jersey, California, Colorado and Arizona. Compounded medications are created and prepared by specialist pharmacists and pharmacy technicians when there is no commercially available alternative. The Company holds over 66,000 relationships with veterinarians and directly serves more than 360,000 pet owners annually. Wedgewood has a broad and diverse portfolio of offerings, leading to low customer and stock concentration; holds strategic partnerships with veterinary corporate groups; and offers a defined value proposition to veterinary clinics and pet owners.

Following the investment, Partners Group will work closely with Wedgewood's management team to implement new strategic initiatives that support ongoing organic growth. Key areas of focus will be investing in the Company's sales and marketing functions; enhancing technology to drive digital engagement with veterinarians and pet owners through multiple channels; and continuing its veterinary footprint expansion through corporate group partnerships and new customer acquisitions, as well as opportunistic M&A.

Chris Russell, Managing Director, Private Equity Americas, Partners Group, states: "Wedgewood operates in an attractive, resilient market segment with strong fundamental growth drivers identified by our Thematic Sourcing approach. We have strong conviction in the pet and veterinary sector and the Company's talented management team, as well as in our ability to offer significant value given our established success building franchised specialty healthcare platforms in the US. The Company is an excellent candidate to achieve its next phase of growth supported by Partners Group's transformational investment strategy of operational improvement through active ownership. We look forward to working with Wedgewood to build further value in the business on behalf of all its stakeholders."

Marcy Bliss, Chief Executive Officer, Wedgewood, says: "We have worked hard to create the leading brand in the US compounded animal medications market, and are very proud of the growth the company has achieved in recent years. We believe Partners Group's success in building specialty healthcare platforms and its expertise in the veterinary sector, as well as its commitment to being a responsible and entrepreneurial business owner, make it the right partner to support Wedgewood through its next phase of growth."

Sofia Gerard, Member of Management, Private Equity Americas, Partners Group, adds: "We are delighted to partner with Wedgewood as a market leader in the animal-health compounding pharmacy industry. The Company has strong brand recognition in a market that is fast-growing due to the increasing humanization of pets and longer pet-life expectancy. The Company is well-positioned to benefit from Partners Group's deep sector expertise, operational resources and geographical footprint, going forward."

Ropes & Gray LLP and KPMG International Limited acted as advisors to Partners Group. Lincoln International LLC led the transaction for Wedgewood Pharmacy, with Reed Smith LLP and RSM International acting as advisors to the Company.