ZellBios ZellBios ZellBios

Overview

Formed in 2011 through the combination of Farmabios (Italy; acquired in 2007) with Pharmazell (Germany; acquired in 2011), ZellBios is an independent manufacturer of specialty, high value-added active pharmaceutical ingredients (“APIs”).

The company is headquartered in Raubling (Germany) and has production and R&D facilities in Germany, Italy, India, and Switzerland.

0

independent player
globally in niche APIs

0%

sales CAGR and ~15% EBITDA CAGR
over Ergon’s
investment period

0

R&D centers globally
with 73 FTEs (~10% of total)

0%

of sales generated in international regulated markets, subject to high barriers to entry

Investment Date:
Exit Date:
Sector:
Region:
Sales:
Employees:
 August 2007
 February 2014
 Healthcare
 Italy
 €130m at exit
 700 at exit

How did we support ZellBios

We acquired Farmabios from its founder in August 2007. We recognized (i) the company’s reputation and leadership position in high value-added niches, (ii) the strong know-how in manufacturing highly complex molecules, and (iii) the wide product portfolio and recurring customers base.

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

Strategy

Our priority was to refine the company’s strategy, both in terms of organic initiatives and value-adding acquisitions, with the aim of creating a strong specialty APIs player with an international footprint.

In terms of organic development, we focused on launching new products and expanding the company’s industrial footprint. As such, we launched a greenfield project around a new family of rapidly growing APIs, namely highly potent anti-cancer APIs, we finalized two capacity expansion projects in Germany (5-ASA) and India (L-Cysteine) and we acquired an industrial site in Switzerland.

Transformational M&A

The key growth accelerator of our investment in Farmabios was the transformational acquisition of Pharmazell in 2011. The combination of the two companies allowed to (i) increase critical mass, (ii) achieve significant commercial synergies, both in terms of products and customers, (iii) gain access to low-cost manufacturing, and (iv) boost the products’ pipeline.

Operations

Management acknowledged the need to further professionalize a series of internal processes and we supported the team in such initiative, putting in place a full set of financial and operational KPIs. This helped management not only to improve controlling but, most importantly, to anticipate risks and opportunities.

In addition, we optimized operations by introducing a more focused approach vis-à-vis customers and products, diversifying the company’s suppliers base and implementing an effective currency hedging strategy.

Finally, we reinforced the management team completing a full transition from the founder to a professional CEO and, following the merger with Pharmazell, to a group Executive Chairman and a group CFO.

Investment Date: August 2007
Exit Date: February 2014
Sector: Healthcare
Region: Italy
Sales: €130m at exit
Employees: 700 at exit

Overview

Formed in 2011 through the combination of Farmabios (Italy; acquired in 2007) with Pharmazell (Germany; acquired in 2011), ZellBios is an independent manufacturer of specialty, high value-added active pharmaceutical ingredients (“APIs”).

The company is headquartered in Raubling (Germany) and has production and R&D facilities in Germany, Italy, India, and Switzerland.

0

independent player
globally in niche APIs

0%

sales CAGR and ~15% EBITDA CAGR
over Ergon’s investment period

0%

of sales generated in international regulated markets, subject to high barriers to entry

0

R&D centers globally
with 73 FTEs (~10% of total)

How did we support ZellBios

We acquired Farmabios from its founder in August 2007. We recognized (i) the company’s reputation and leadership position in high value-added niches, (ii) the strong know-how in manufacturing highly complex molecules, and (iii) the wide product portfolio and recurring customers base.

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

Strategy

Our priority was to refine the company’s strategy, both in terms of organic initiatives and value-adding acquisitions, with the aim of creating a strong specialty APIs player with an international footprint.

In terms of organic development, we focused on launching new products and expanding the company’s industrial footprint. As such, we launched a greenfield project around a new family of rapidly growing APIs, namely highly potent anti-cancer APIs, we finalized two capacity expansion projects in Germany (5-ASA) and India (L-Cysteine) and we acquired an industrial site in Switzerland.

Transformational M&A

The key growth accelerator of our investment in Farmabios was the transformational acquisition of Pharmazell in 2011. The combination of the two companies allowed to (i) increase critical mass, (ii) achieve significant commercial synergies, both in terms of products and customers, (iii) gain access to low-cost manufacturing, and (iv) boost the products’ pipeline.

Operations

Management acknowledged the need to further professionalize a series of internal processes and we supported the team in such initiative, putting in place a full set of financial and operational KPIs. This helped management not only to improve controlling but, most importantly, to anticipate risks and opportunities.

In addition, we optimized operations by introducing a more focused approach vis-à-vis customers and products, diversifying the company’s suppliers base and implementing an effective currency hedging strategy.

Finally, we reinforced the management team completing a full transition from the founder to a professional CEO and, following the merger with Pharmazell, to a group Executive Chairman and a group CFO.

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