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ELITech

ELITech is a leading manufacturer of specialty in-vitro diagnostics equipment and reagents, focusing on molecular diagnostics, microbiology and clinical chemistry.

Objective

Invest in a leading international in-vitro diagnostics company, benefitting from a unique IP portfolio and a consistent market growth, backed by an increasing focus on preventive healthcare in the context of increasing medical spending and an aging population. Significant upside potential through products development in key niches of in-vitro diagnostics (e.g., molecular diagnostics including PCR tests), further internationalization and M&A, as well as development of the company’s processes, in light of this primary transaction in partnership with the ELITech’s founder.

Objective

Invest in a leading international in-vitro diagnostics company, benefitting from a unique IP portfolio and a consistent market growth, backed by an increasing focus on preventive healthcare in the context of increasing medical spending and an aging population. Significant upside potential through products development in key niches of in-vitro diagnostics (e.g., molecular diagnostics including PCR tests), further internationalization and M&A, as well as development of the company’s processes, in light of this primary transaction in partnership with the ELITech’s founder.

ENTRY & EXIT

Dec 2010 / Jul 2017

COUNTRY

France

SECTOR

Healthcare
Key Achievements at Exit
>€2.5bn
SALES
€129m
36
7

EMPLOYEES

520
Key Achievements at Exit
>€2.5bn
SALES
€129m
36
7

EMPLOYEES

520

OVERVIEW

Founded in 1997 and headquartered in Paris (France), ELITech is a leading manufacturer of specialty in-vitro diagnostic (“IVD”) systems (instruments and reagents), operating a razor/razor-blade model
It is active in the niches of three core IVD technologies, namely molecular diagnostics (the fastest growing segment of IVD), microbiology and clinical chemistry. It is primarily focused on low/mid throughput customers (e.g., small and mid-sized laboratories and hospitals and physician office laboratories), while also selling through partnership/OEM agreements to other leading IVD companies.

ELITech is vertically integrated with expertise in research and development, manufacturing and distribution. With seven production/assembly sites in Europe, the US and Brazil, its products are sold globally, with (i) direct distribution in 10 key countries, combined with (ii) an established international network of distributors and strong OEM partnerships.

OVERVIEW

Founded in 1997 and headquartered in Paris (France), ELITech is a leading manufacturer of specialty in-vitro diagnostic (“IVD”) systems (instruments and reagents), operating a razor/razor-blade model.
The Company serves mainly small/medium sized assemblers, installers and fabricators from its various hubs in Belgium, France, UK, Poland, La Réunion and China.

It is the only company in the market with a vertically integrated manufacturing process including design, extrusion of aluminum, painting, coating, cutting and assembly all on one site. This business model is replicated in each production hub to achieve higher margins, better inventory management and first-class customer service (e.g., shorter delivery times, high availability).

Key Indicators

∼€10m
R&D per annum
2
next generation platforms developed
90%
international sales

2

add-ons acquisitions

Key Indicators

∼€10m

R&D per annum

2
next generation platforms developed

90%

international sales

2/span>

add-ons acquisitions
How did we support ELITech
In December 2010 we acquired Elitech from its founder, who reinvested alongside us. We recognized (i) the quality of its management team, (ii) its differentiated underlying technology, and (iii) the recurring cash flows from the installed base of equipment consuming IVD reagents.

To enable ELITech reach its full potential, we focused on:

Organization
Management recognized it lacked proper tools to monitor such a complex international business. We helped recruiting a top-notch CFO who established a complete cross-country finance team, implemented a global ERP and set up high quality reporting.

In parallel, we simplified the organization and reporting structure and helped recruiting new managers to complete the talent pool.

Finally, we assisted the transition from the founder to an independent manager, attracting Siemens’ Head of Molecular Diagnostics and Microbiology business unit as CEO.

Strategy
At acquisition in December 2010, ELITech had a myriad of products and activities, but somehow lacked a proper strategy.

Together with management, we streamlined the business model around three key segments, with a special focus on molecular diagnostics, the fastest growing segment of IVD.

Growth acceleration
The key to ELITech’s success was to nurture its IP and know-how. We allocated more than €10 million annually to R&D to develop breakthrough new products, including a next-gen equipment in molecular diagnostics and various innovative tests.

In parallel, the company expanded internationally and leveraged its resources through partnerships with large groups.

Finally, we assisted management with two add-on acquisitions, one in France (global leader in mycoplasma diagnostics) and one in the US (manufacturer and distributor of IVD equipment and reagents focusing on clinical chemistry and haematology).

Case Studies