Company Overview
American HealthCare Capital is proud to be the exclusive representative of a well-established OTC Drug private labeling development, manufacturing, and sales Company. Founded in 2009, the company operates in three Health, Beauty, and Home Product operating segments. These include Cough Drops, Antacids, Durable Medical Equipment, Drugs of Abuse Tests, Family Planning products, Skincare and sunscreens, Sanitary Pads, and Paper Goods.
The company is establishing a NEWCO spinoff company for its Home Testing Private-Label Kits. These will include six products: an Early Detection Pregnancy test, a Digital Pregnancy Rapid Test, an Ovulation Kit, a Drugs of Abuse Test for both 1 Drug Oral Test Kit and 6 Drug Oral Test Kits, and a COVID-19 & FLU A+B Home Multi Test.
Financial Overview
The Company will utilize its 15 years of expertise in Private Labeling to establish a separate Home Testing company. The Company will use its strong existing customer base of distributors and 25,000 retail stores to sell its six Private-Label Home Testing products and transfer its existing business. Historic revenues in Home Testing Kits in 2023 and 2024 were $984,035 and $836,043, respectively.
The Company has a robust customer base. They have secured new contracts with existing customers to expand diagnostic Home Testing products. Its top three customers, CVS, 7-Eleven, and Army/Air Exchange, have executed purchase orders of about $2.5 million for Home Testing Kits. These will go live in May, June, and August of this year. This will increase the 2025 revenues by approximately $1.5 million in 2025. The 2025 plan is for revenues of about $2.0 million and EBITDA of $840,000 or an EBITDA margin of 41%.
The Company is expected to receive FDA approval for its newest Private-Label product, COVID-19 & FLU A+B Home Multi Test, during the fourth quarter of 2025. In the interim, the company uses another 3rd party vendor’s product at lower margins to secure the initial customer contracts. When the company’s new FDA-approved product goes live, it will significantly increase gross profit and could generate $20 million in revenues over the next few years. The 2026 forecast is expected to generate annual net revenue of $11.0 million with an EBITDA of $5.0 million (45%).
Key investment highlights include:
- Self-Testing Market growing at 8.4% CAGR to 2030
- Global market size in 2024 of $11 billion
- Private label expertise with Branding, Manufacturing, Logistics, and Distribution
- Strong Retail presence – 25,000 stores and distribution channels
- Self-Testing Kits in 3 sectors of Family Planning, Drug of Abuse, and Covid-19 & Flu A+B
- 2025 product sales to existing customers with $2.5 million in new Contracts/Purchase Orders.
- Pipeline – FDA approval of Covid-19 & FLU A+B Home Multi Test expected in Q4 2025
- Significant sales driver for $20 million and margin enhancement
- Seller is committed to growth and product expansion with 25% to 30% equity rollover
Deal Structure and Asking Price
The transaction involves selling 70 to 75 percent ownership in NEWCO at a $6 million valuation, plus an earnout for the Founder’s ongoing involvement and incentive for further growth. The Founders will keep a minority stake and continue to work with the new partner for long-term growth. It excludes cash, accounts receivable, and working capital, which will not be transferred into the new company. The Founders seek a strategic partner to add value and resources to grow the Company to the next level.
