MidEuropa Acquires a Majority Stake in FAMAR
MidEuropa announces today that it has signed an agreement to acquire a controlling stake in FAMAR, a well-established pharmaceutical contract development and manufacturing organisation (CDMO), from ECM Partners and Metric Capital Partners. MidEuropa will invest alongside the management team and current shareholders, who will retain a minority stake. The transaction, which is subject to customary anti-trust and regulatory approvals, is expected to close in the second half of 2024.
FAMAR is a trusted partner to a diversified blue-chip client base of pharmaceutical companies operating in more than 80 international markets. The Company provides a full-service offering across the CDMO value-chain, with broad capabilities across multiple dosage forms including sterile, solids, semi-solids, and R&D services. FAMAR employs c.1,900 people working across a network of six manufacturing sites located across southern Europe with two complementary R&D centers.
Matthew Strassberg, Partner and Head of Healthcare Sector Practice at MidEuropa, commented:
“Our investment in FAMAR demonstrates MidEuropa’s continued commitment to identify and support growing platforms in the healthcare sector, and once completed, will bring our total equity investments in the sector to well over €1bn. FAMAR is a growing European CDMO platform with a track record of strong execution, combined with a clear value creation potential and expansion ambitions. We are impressed with FAMAR’s growth and success under Kostas Rengis’ leadership over the past few years and are enthusiastic about the opportunity to support him and his team to further strengthen FAMAR’s relevance to its clients in its current markets and beyond.”
Konstantinos Rengis, CEO of FAMAR, commented:
“We are pleased to welcome MidEuropa as a strong and highly reputable healthcare investor who shares our vision and values. With their backing, we are well placed to further accelerate FAMAR’s growth, provide high quality service to our customers and support our growing team while contributing to the health and well-being of millions of patients worldwide. We are confident that MidEuropa’s long-standing track record in the sector will be instrumental for the Company’s continued success. I also want to thank ECM and Metric for their investment, support and guidance which have been crucial in advancing FAMAR as a European CDMO leader.”
Peter Prock, Current Chairman of the Board of FAMAR, commented:
“I am pleased to see FAMAR open a new chapter of its impressive growth story. I am looking forward to supporting the management team and MidEuropa in their journey to open new markets and serve its customers and wider community.”
Savvas Liasis, Chairman of the Board of ECM Partners, commented:
“When we initially entered into the ownership structure of the business in 2020, we saw in FAMAR a high-quality business with an exceptional heritage of customer service in the pharmaceutical industry. Through extensive turnaround efforts we managed to expand its offering and drive growth by increasing investment, notably in R&D capabilities. Today FAMAR is a leading CDMO with world-class capabilities and quality of service. I am confident that the Company will continue to thrive under MidEuropa’s stewardship and we look forward to continuing our support of FAMAR’s talented management team in the next phase of growth.”
John Sinik, Managing Partner of Metric Capital Partners, commented:
“We are delighted to announce the sale of FAMAR to MidEuropa. We extend our heartfelt congratulations to the management team for their remarkable achievements over the past four years, during which FAMAR has grown to become one of the leading CDMO companies in Europe. We are confident that the Company, with the support of MidEuropa, will continue driving growth and expanding into exciting new areas.”
The transaction was executed by Eugeniu Prodan, Bogdan Bunea, Valentina Giambasu, Jan Jucha and Ivo Cavrak.
MidEuropa was advised by Rothschild & Co (M&A), AXIA Ventures Group (M&A and Debt Advisory) and DLA Piper (legal).
Jefferies acted as the sole financial advisor to FAMAR, with Reed Smith and Papapolitis & Papapolitis serving as the sellside legal counsel on the transaction.