EVENING POST GROUP SELLS EPI HEALTH TO NOVAN, INC

Rhea-AI Summary

Evening Post Group has successfully sold EPI Health, a dermatology-focused pharmaceutical company, to Novan, Inc (NASDAQ: NOVN) for a closing price of $27.5M. This includes $11M in cash and a $16.5M seller note due in 24 months. The acquisition could rise to a total of $50M based on performance earnouts and product milestones. Novan aims to integrate EPI Health's portfolio with its innovative pipeline to enhance dermatological treatments, leveraging EPI Health's established sales force of approximately 40 employees nationwide.

Positive

• Strategic acquisition aligns Novan's pipeline with EPI Health's established portfolio.
• Potential total transaction value of up to $50 million enhances investor sentiment.

Negative

• None.

CHARLESTON, S.C., March 11, 2022 /PRNewswire/ -- Evening Post Group ("EPG"), a family-owned operating group based in Charleston, South Carolina, is excited to announce the successful sale of EPI Health, LLC to Novan, Inc (NASDAQ: NOVN), a public specialty dermatology company based out of Durham, North Carolina.

EPI Health, first acquired by EPG in 2017, is a specialty pharmaceutical company focused on dermatology with various FDA approved medicines through several product acquisitions. EPI Health has become a leader in the space, operating a sales force of approximately 40 employees servicing dermatologists nationwide. The acquisition allows for EPI Health's product portfolio to continue to address important medical issues alongside Novan's innovative pipeline. EPG looks forward to watching the company's next chapter with Novan.

EPG President and CEO Terry Hurley commented: "We are proud of what EPI Health has accomplished under EPG ownership. We see this acquisition as a great strategic fit for Novan and look forward to seeing the combined company take the next step in dermatology treatment."

The transaction structure includes a closing purchase price of $27.5M consisting of $11M cash and $16.5 million as a 24-month seller note. Additional performance earnouts and specified milestones achieved by EPI Health's products could increase the total consideration to approximately $50M.

About EPG

EPG is a family-owned operating group based in Charleston, South Carolina focused on acquiring and building exceptional businesses. Our approach is acquiring sustainable, differentiated businesses and providing the operational, strategic, and financial support to grow cash flows. EPG began in 1896 as a single newspaper and has evolved into an operator of businesses in various sectors through over 20 acquisitions in the past decade. EPG remains an active acquiror targeting middle market businesses across multiple industries.

Blank Rome LLP acted as legal advisor to EPG in connection with this transaction.

About Novan

Novan develops and markets therapeutic products for skin diseases. The company has a robust pipeline of products with the goal of delivering safe and effective therapies.

H.C. Wainwright & Co. acted as financial advisor and Smith Anderson acted as legal advisor to the Company in connection with this transaction.

View original content:https://www.prnewswire.com/news-releases/evening-post-group-sells-epi-health-to-novan-inc-301501226.html

SOURCE Evening Post Group

FAQ

What is the closing price of the EPI Health acquisition by Novan?

The closing price of the EPI Health acquisition by Novan is $27.5 million.

What are the terms of the EPI Health sale to Novan?

The sale includes $11 million in cash and a $16.5 million seller note, with possible performance earnouts raising total consideration up to $50 million.

How many employees does EPI Health have for its sales force?

EPI Health operates a sales force of approximately 40 employees.

When was EPI Health acquired by Evening Post Group?

Evening Post Group acquired EPI Health in 2017.

What industry does Novan operate in?

Novan operates in the dermatology industry, developing therapeutic products for skin diseases.