AGIC Capital Led Consortium Agrees to Acquire Ritedose

  • AGIC steps into US market; leads co-investment in Ritedose, the pharmaceutical leader in blow-fill-seal (BFS) manufacturing
  • Follows the successful acquisition of Fotona in April 2017 and is second healthcare investment
  • Will accelerate Ritedose’s growth in the US and open new markets in Europe and Asia, with strong support in China landing strategy

(London, Hong Kong and New York; 26 June, 2017) An AGIC Capital (AGIC) led consortium has agreed to acquire The Ritedose Corporation (Ritedose), the pharmaceutical leader in blow-fill-seal (BFS) manufacturing from Olympus Partners, a private equity firm.

Ritedose, which was founded in 1995 in South Carolina, is the US market leader in BFS manufacturing, a process in which plastic containers are blow-molded, filled with liquid product and sealed in one continuous operation under aseptic processing conditions. In addition, Ritedose also develops, manufactures and sells its own generic portfolio of respiratory pharmaceutical products.

BFS technology has gained rapid world-wide acceptance in the injectable drug marketplace, replacing glass vial processing in many applications and is considered a superior method for aseptic filling of pharmaceuticals by various regulatory bodies such as the US Food and Drug Administration (FDA). A report by Market and Markets found that the pharmaceutical packaging market was valued at USD 65.55 billion in 2015 and is projected to reach USD 94.93 billion by 2021, at a CAGR of 6.4% from 2016 to 2021[1].

Henry Cai, Chairman of AGIC said:

“AGIC is the first Europe/US-Asia cross-border promotion fund focusing on investment in fast growing companies in Europe and the US. Our strategy is to select high value, innovative and well managed companies that have significant potential for growth but need the finance and expertise to do so, particularly in new markets such as Europe and Asia. AGIC is fully committed to providing those companies with the resources and regional expertise to support the expansion of the customer base and identify business opportunities in Asia, especially in China. Ritedose ticks all of those boxes. We will work with the management team to bring Ritedose to the next stage of growth.”

Sam Sun, Managing Director and Head of Greater China for AGIC commented:

‘‘Ritedose is the market leader in BFS technology in the United States and we see tremendous potential for this business to expand capacity and grow further in this region. With the investment and management support from AGIC’s healthcare team, Ritedose will be able to navigate through the regulatory approvals it needs to accelerate its expansion in the US and move into new markets in Europe and Asia, in particular China and Japan where demand for BFS in respiratory medicine is increasing. The investment in Ritedose further demonstrates how AGIC, working alongside co-investors and the existing management of companies, can provide the financing and expertise to enhance the value of fast growing companies with global aspirations.“

Dr. Umesh Dalvi, president and CEO of The Ritedose Corporation added:

“Ritedose has become the leading producer of sterile pharmaceutical products that use Blow-Fill-Seal technology. Through AGIC’s investment, we can continue to execute on our multifaceted growth strategy and invest in new product development, improve our technology capabilities and build capacity to meet the rapidly growing demand from our global customer base. Most importantly, AGIC will work with our existing management team to help us go even further to become the global market leader in Blow-Fill-Seal technologies.”

AGIC is the first European-Asian buyout investor focused on European and US mid-market companies in high growth industries. AGIC continuously  evaluates options to support its portfolio companies including sourcing better financing solutions, driving organic and inorganic growth, delivering operational efficiencies, and leveraging synergies accross its complementary portfolio of companies.

Olympus Partners is a private equity firm focused on providing equity capital for middle market management buyouts and for companies needing capital for expansion. Olympus is an active, long-term investor across a broad range of industries, including restaurants, consumer products, healthcare services, financial services and business services.

Piper Jaffray & Co. is acting as exclusive M&A and debt financing advisor. Gibson, Dunn & Crutcher LLP and Jones Day are the legal advisors for the consortium.

Ritedose is being represented in the sale by William Blair & Company and Baird, with legal representation from  Kirkland & Ellis.