• 2022/05/09 | ArchiMed’s MED II fund earns a 6x return on its first exit

    The purchase of point-of-care specialist EUROLyser by Antech Diagnostics brings EUROLyser’s innovative technology and expansion opportunities to Europe and beyond.

    Trans-Atlantic private equity healthcare specialist ArchiMed announces the sale of point-of-care diagnostics specialist EUROLyser to Antech Diagnostics, part of Mars Veterinary Health. This first exit for ArchiMed’s MED II - the fund raised €315 million in 2017 - earns six times the money invested in EUROLyser, or an 80 percent annualized return. EUROLyser, purchased three years ago - with company management holding a significant minority position - also hands more than half of the capital raised for MED II back to investors and marks the fund as a top-decile performer among all global buyout funds for its vintage year, according to Preqin data.

    Founded in 2005, Salzburg, Austria-based EUROLyser designs and engineers patented point-of-care testing equipment and kits, diagnosing a wide range of conditions in animals and humans. Point-of-care testing is done at the time of consultation, leading to the immediate availability of results and more timely, informed decisions concerning treatment.

    Working in partnership with management - including company founders - ArchiMed increased EUROLyser’s profits more than two-fold, boosting average annual sales growth to more than 25% during its three-year holding period - up from the high single-digits in the years prior to its purchase. This was achieved through various strategic actions, including investing in efficient technologies (such as remote access to in-the-field analyzers); negotiating a range of commercial partnerships with veterinary care groups; additional sales expansion in the US; and hires to strengthen regulatory affairs and research and development. Two board members, both in vitro diagnostics experts who played key roles pursuing growth, Dr. Dirk Ehlers and Michael Williams, were recruited through ArchiMed’s MedTalents® (a global network of ArchiMed-associated senior healthcare executives who identify, facilitate and advise on deals and counsel portfolio companies).

    “ArchiMed knew exactly what we needed to not let opportunities slip by,” says Michael Gruber, co-founder and CEO of EUROLyser. “The partnership with Antech is an example of this.” “We’re pleased to have helped EUROLyser reach its next stage of growth,” says ArchiMed Managing Partner Vincent Guillaumot.

    Adds Lonnie Shoff, President of Antech, “We believe EUROLyser will help us make a better world for pets due to its global footprint, unique products and the expertise of its R&D and management teams.”

    Following the sale of EUROLyser, the fully invested MED II owns ten companies, including two other diagnostics specialists: Diesse, a developer of both in vitro systems for detecting autoimmune and infectious diseases (including Covid-19), and hematology systems for diagnosing inflammation; and ZytoMax, a developer, manufacturer and distributor of precision medicine cancer tests.

    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, healthtech 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 €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, stephanie.duche@archimed.group, +33 (0)6 16 36 11 08

    International: David Lanchner, dlanchner@lanchner.com, +33 (0)6 33 43 50 76

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  • 2022/02/02 | ArchiMed sells health ingredients developer Fytexia to Associated British Foods

    Sale earns a 4x return - Fytexia’s soaring top and bottom-line growth is set to continue in new partnership with Associated British Foods. 

    Trans-Atlantic private equity healthcare specialist ArchiMed announces the sale of health ingredients developer Fytexia to diversified food, ingredients and retail group, Associated British Foods, a FTSE 100 company. The transaction - which sees Fytexia join the ABF Ingredients division - earns ArchiMed’s inaugural MED I fund four times its investment. Following Fytexia’s sale, MED I retains its rank as the best performing buyout fund in the world across all sectors for the 2014 vintage, according to Preqin data. MED I has returned four and a half times invested capital to limited partners to date. Its total return - including four realized and five remaining investments - is seven times invested capital.

    Working hand-in-hand with management since buying Fytexia in 2016, ArchiMed has built it into a category leader in botanic and propolis-based polyphenols through senior level recruitment (commercial, board, finance, production, R&D), multiplication of clinical studies, product diversification, North American sales expansion and targeted acquisition. In 2021, using its global MedTalents® network (ArchiMed-associated senior healthcare professionals who identify, facilitate and advise on deals and counsel portfolio companies), ArchiMed sourced and executed Fytexia’s transformational acquisition of Milan, Italy-based B Natural - a leader in propolis-based polyphenols - boosting sales some 40 percent.

    Under ArchiMed’s ownership, total annual Fytexia sales growth has risen from the single digits to close to 30 percent for the past four years. Profits have risen four-fold over the same period.

    “Our partnership with Fytexia is an example of the whole being greater than sum of the parts,” says ArchiMed partner, Robin Filmer-Wilson.  “We put our skills in healthcare business development and M&A at the service of talented management teams looking to accelerate growth into the long-term. With their expertise, global reach and scale, ABF is the perfect relay partner for Fytexia’s continued expansion in this burgeoning sector.”

    Businesses previously sold by ArchiMed’s MED I include healthcare ingredients group HIS, for an annualized return of over 400 percent; dental operator Primo, for three times investment; and gene and cell therapy technology specialist Polyplus-transfection for almost 70 times investment.

    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 European and North American small and middle-market businesses. Prioritized areas of focus include biopharmaceutical products & services, life science tools, medical devices & technologies, diagnostics, healthcare IT 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 over €4 billion ($4.8 billion) in healthcare assets 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, stephanie.duche@archimed.group, +33 (0)6 16 36 11 08

    International: David Lanchner, dlanchner@lanchner.com, +33 (0)6 33 43 50 76

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