The agreed purchase by UPS and previous liquidity events return 70 percent of their money, on a cash-to-cash basis, to MED Platform I’s Investors, just three years after the fund closed in 2019. The confidential terms of the transaction are not being disclosed at this time.
ArchiMed has reached agreement to sell healthcare logistics provider Bomi Group to UPS (NYSE: UPS), the world’s largest courier and logistics group. Bomi is invested out of ArchiMed’s MED Platform I, which closed on commitments of €1.5 billion in 2020 (€1.0 billion excluding co-investment vehicles), then a record for a Europe-based private equity healthcare fund, about to be beaten by MED Platform II. Following the sale, and previous liquidity events for other portfolio companies, MED Platform I has distributed 70 percent of its invested capital. The fund’s total performance is already at a 2.2 times multiple, or a 69 percent annualized return. This makes MED Platform I a strong top-decile performer for all buyout funds launched in 2019, according to Preqin data, in line with ArchiMed’s smallcap fund MED II for its corresponding 2018 vintage (MED I is the best performing Buyout fund at a global level for the 2014 vintage).
“In partnership with management and the founding family, we rapidly internationalized Bomi’s exceptional expertise in healthcare logistics and applied it to a wider range of sector services,” says ArchiMed Managing Partner André-Michel Ballester. “We’re delighted that the stewardship of Bomi will now pass to UPS - they are the logical candidate to take this company to the next level.” The sale of Bomi attracted both financial and strategic buyers, but ArchiMed and management decided that the best fit would be with UPS.
“We had best-in-class growth and development support from ArchiMed,” says Bomi Chief Executive Marco Ruini. “ArchiMed helped us source, negotiate and close 15 acquisitions over three years, crucially strengthening our business in both Europe and the Americas and expanding our capabilities. In three years, our organic growth moved from high single digit (+6% p.a.) to high double digit (+18% p.a.).” Ruini and his management team will remain in place following the transaction.
Bomi, headquartered in Spino d’Adda, Italy, was founded in 1985 by Ruini’s father Giorgio. Listed on Borsa Italia’s AIM market, Bomi was taken private by ArchiMed in 2019 and was MED Platform I’s first acquisition. Marco Ruini massively reinvested alongside ArchiMed, with other managers also taking stakes. ArchiMed and management more than doubled revenues at Bomi over three years to some €300 million in 2022.
MED Platform I and its successor fund MED Platfom II - currently being raised - partner with growth companies in the European and North American mid-cap healthcare sectors, buying majority stakes for €50 million to €1 billion in association with existing owners and managers. The MED Platform funds provide companies with the strategic, tactical and financial resources they need to broaden product lines and expand into new regions, organically and through acquisitions.
MED Platform II has raised a substantial, but undisclosed amount since launching fundraising in January, which makes it one of the largest Healthcare Buyout funds at a global level. It has an investor re-up rate of almost 100 percent, with the typical commitment larger than the average commitment to MED Platform I. MED Platform II will target 10 to 12 platform investments versus the seven MED Platform I targeted. MED Platform II has attracted a wide-range of institutional and family office investors, with respectively 50 percent, 40 percent and 10 percent coming from Europe, North America and the Asia-Pacific region. In July, MED Platform II made its first acquisition, a $1.1 billion take-private purchase of Nasdaq-listed Natus, a global leader in neurodiagnostic devices. One further platform investment is likely for MED Platform II by the end of year.
About ArchiMed - www.archimed.group - With offices in the US and Europe, ArchiMed is a leading investment firm focused exclusively on healthcare industries. Its mix of operational, medical, scientific and financial expertise allows ArchiMed to serve as both a strategic and financial partner to North American and European healthcare businesses. Prioritized areas of focus include Biopharmaceutical Products & Services, Life Science Tools, Medical Devices & Technologies, Diagnostics, Health Technologies & Software and Consumer Health. ArchiMed helps partners internationalize, acquire, innovate and expand their products and services. Over the last twenty years, ArchiMed’s leadership team has directly managed and invested in over eighty small- to large-size healthcare companies globally, representing over €50 billion of combined value. ArchiMed manages more than €5 billion across its various funds. Since inception, ArchiMed has been a committed Impact investor, both directly and through its Eurêka Foundation.
Contacts - France: Stéphanie du Ché, email@example.com, +33 (0)6 16 36 11 08;
International: David Lanchner, firstname.lastname@example.org, +33 (0)6 33 43 50 76
Advisors: Morgan Stanley International Inc. acted as exclusive financial advisors to the transaction. Latham & Watkins acted for ArchiMed in the sale. Management advisors were Simmons & Simmons.
Morgan Stanley & Co. International plc (“Morgan Stanley”), which is authorized by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the United Kingdom, is acting exclusively as financial adviser to Bomi Group and no one else in connection with the transaction. In connection with such matters, Morgan Stanley, its affiliates and their respective directors, officers, employees and agents will not regard any other person as their client, nor will they be responsible to anyone other than Bomi Group for providing the protections afforded to clients of Morgan Stanley nor for providing advice in connection with the transaction, the contents of this announcement or any matter referred to herein.