Pharmacist founder back at Wisconsin Pharmacal

Wundrock, Potts focus on 'core products' after Repel's departure

Returning to take over a company he first owned more than 30 years ago, John Wundrock is confident he and his business partner will be just what the doctor ordered when it comes to rebuilding Wisconsin Pharmacal Co.'s core brands.

Wundrock, 60, is a pharmacist who led the company from 1971 until 1997. His partner, Jeffrey Potts, 51, is the former president and chief executive officer of The Company Store in La Crosse. The partners purchased Wisconsin Pharmacal, which is based in Jackson, in June from Maryland Heights, Mo.-based United Industries Corp., an insecticide manufacturer.

Wundrock said United Industries purchased Wisconsin Pharmacal in December 2002 solely to gain the rights to Wisconsin Pharmacal's best-known product, Repel insect repellent.

As United Industries, which does business as Spectrum Brands, focused on Repel, little attention was paid to Wisconsin Pharmacal's other products, such as Potable Aqua water purification tablets, Sting Eze insect bite relief, Baitmate fish attractants, Reflect sun care products and Atwater Carey first aid kits, Wundrock said.

United Industries, which also makes Cutter insect repellent, had little reason to keep the Jackson plant operating, Wundrock said.

"We contacted them to see if any of the other brands would be available," said Wundrock.

They purchased all the brands but Repel, as well as the Jackson plant. Terms of the deal, which is being financed through TCF Bank in Milwaukee and the State of Wisconsin Investment Board, weren't disclosed.

United Industries, which had operated the business as WPC Brands, wouldn't part with the WPC name. So Wundrock, who is president and chief executive officer, and Potts, who is chief operating officer and chief financial officer, decided to revert back to the Jackson company's old name, Wisconsin Pharmacal Co.

Wundrock and Potts said they also wanted to save the approximately 45 permanent jobs at the plant. United Industries had indicated it was prepared to shut down the Jackson plant by July, Wundrock said.

The new owners said they want to acquire complementary product lines, such as water filtration products, but initially will focus on existing core brands.

"Our first priority is making sure our existing brands are properly positioned," he said.
The company already has hired three employees since the acquisition, including one with marketing expertise.

Wisconsin Pharmacal also recently landed a military contract. In a deal announced Sept. 9, the company will provide as many as 300 million water purification tablets to the U.S. military through 2006.

The lack of attention to the company's core products goes back long before United Industries took ownership, said Wundrock, who previously acquired Wisconsin Pharmacal in 1971 and took it public in 1991 to raise capital for the development of a female condom line.

In 1996, the company split into two parts, with Chicago-based Female Health Co., the female condom business, remaining public. Wundrock was interested at the time in buying back the outdoor products business, but was outbid by JLS Investment Group, Madison.

JLS purchased the business with the intent of selling it off in five years after building up the Repel product line, Wundrock said.

JLS sold WPC Brands to United Industries last December for $19.5 million. The Jackson plant continues to produce non-aerosol versions of Repel under a five-year contract with United Industries
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Wisconsin Pharmacal is looking to expand its contract manufacturing, which accounts for about 35 percent of the company's revenue.

The 74,000-square-foot Jackson plant handles filling operations for products such as gels, lotions and creams, he said. The plant also is set up for expanded tablet-making operations for private-label business, Potts said.

The company hopes to leverage its agreements with major retailers like Wal-Mart, Target and REI.

Although Wundrock declined to offer details about Wisconsin Pharmacal's financial performance since the acquisition, he said it's "already exceeded our most aggressive expectations."

The St. Louis Business Journal contributed to this report.

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