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Healthcare specialist ARCHIMED banks 400% IRR from first exit




Healthcare specialist ARCHIMED has sold its stake in health ingredients company HIS for an enterprise value in excess of €25m, earning close to 2.5x its investment and generating an IRR of 400 per cent.

The French company has been sold to Germany-headquartered natural ingredients group Döhler.

ARCHIMED purchased its stake in HIS as part of a management buyout from the company’s founder in June. But the private equity firm began working with the HIS management team in January 2016, formulating a new strategic plan based on an improved ESG and recruitment, greater production capacity and expansion into consulting services. As part of the HIS sale, the management team will retain its stake in the company and substantial deferred incentive.

The deal is the first exit from the firm’s inaugural €150m Med 1 fund, which closed above target in 2015 and typically makes investments of between €5m and €30m. “We’re less than two years out from Med 1’s fundraising close, but we should be announcing further liquidity events shortly,” said Vincent Guillaumot, managing partner of ARCHIMED.

By Luciano Figari 11th April 2017