Target Information

ARCHIMED has successfully completed the take-private acquisition of Bomi Group, securing over 99% of the company's shares following the closure of the official bid period mandated by Italian stock market regulator CONSOB on May 10, 2019. The takeover, valued at approximately €70 million, was initiated on March 1 at a price of €4.00 per share, representing a generous premium of around 31% over Bomi Group's closing price prior to the announcement.

Bomi Group, founded in 1985, has established itself as a leading provider of transport, warehousing, and supply chain management services tailored to the healthcare sector. The firm services a diverse clientele, including pharmaceutical and medical equipment manufacturers, hospitals, testing laboratories, and outpatient service providers, operating in 20 countries across Europe, the Americas, and Asia.

Industry Overview

The healthcare logistics industry has undergone significant transformation, driven by technological advancements and the increasing demand for efficient supply chain solutions. Countries with advanced healthcare systems, such as Italy, have seen a growing need for specialized logistics services that ensure timely and safe delivery of medical products and equipment. As healthcare providers expand globally, the demand for robust logistics support continues to rise.

In Italy, the healthcare sector is robust and continuously evolving, supported by government investments and a focus on improving healthcare infrastructure. The logistics segment, particularly for medical products, is integral in streamlining operations, reducing costs, and enhancing service delivery in a rapidly changing environment. This presents lucrative opportunities for companies like Bomi Group that specialize solely in healthcare logistics.

The push towards privatization in healthcare services has also created favorable conditions for investments in mid-sized and smaller companies. As the market matures, private equity firms are increasingly targeting these organizations, believing that they can unlock potential growth by shifting away from the pressures of public market performance.

The trend towards take-private transactions signifies a broader confidence in the long-term profitability and growth of specialized healthcare firms. The success of larger take-private deals has paved the way for mid-sized transactions, indicating a more inclusive investment landscape within the healthcare sector.

Rationale Behind the Deal

ARCHIMED's acquisition of Bomi Group aligns with its strategic vision to pursue take-private opportunities within the mid-cap market. By delisting Bomi Group, ARCHIMED aims to leverage greater operational flexibility and reduce market pressures, enabling the company to focus on aggressive growth strategies. The expectation is that Bomi Group will evolve into a platform for additional investments, with various growth candidates already identified.

Bomi Group's innovative logistics services position it uniquely to capitalize on the increasing demand for healthcare supply chain solutions. ARCHIMED believes that by integrating Bomi Group into its MED Platform I, they can accelerate its growth trajectory by tapping into the specialized knowledge required in the Medtech sector.

Information about the Investor

ARCHIMED is a pan-European private equity firm focused predominantly on the healthcare sector. With a proven track record of strategic investments, the firm is committed to unlocking the full potential of its portfolio companies through active management and industry expertise. The establishment of the MED Platform I fund, targeted at raising €800 million, further demonstrates ARCHIMED's commitment to creating a robust healthcare investment vehicle.

The firm leverages the extensive experience and industry knowledge of its team to differentiate its approach. With industry veterans leading the charge, including partner André-Michel Ballester, who brings over 30 years of Medtech experience, ARCHIMED is well-positioned to support Bomi Group's growth and capitalize on emerging market opportunities.

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The acquisition of Bomi Group by ARCHIMED is likely to be a strategically sound investment choice. With the healthcare logistics sector in Italy steadily growing, the potential for Bomi Group to enhance its operations and expand geographically is significant. Transitioning away from public scrutiny will enable the management team to focus on long-term strategies and innovations without the pressure of quarterly earnings reports.

Furthermore, ARCHIMED's belief in the potential for aggressive growth in Medtech logistics further supports the rationale behind this acquisition. The firm’s expertise combined with Bomi's established business model creates a promising environment for both organic growth and strategic acquisitions.

Keeping in mind the initial investments made by Marco Ruini, the CEO, who is reinvesting 40% of his sale proceeds indicates strong internal confidence in the company’s prospects. This should provide additional assurance to stakeholders about the future direction of Bomi Group.

Overall, the strategic intent, combined with market dynamics and management's commitment to growth, suggests that this investment could prove beneficial for ARCHIMED while enabling Bomi Group to realize its full potential.

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