ArchiMed to make 4x its money on Bomi
Three years into its investment, ArchiMed is poised to make 4x its money with the sale of Bomi Group to UPS, a source familiar with the matter tells Axios.
Why it matters: While the deal's value wasn't disclosed, Bomi reflects a winning investment for the selling private equity firm — further validating increased demand for efficient and reliable health care logistics.
Driving the news: United Parcel Service on Monday announced an agreement to acquire the Italian-based distributor of medical products, gaining a big foothold in temperature-controlled transport.
Catch up fast: ArchiMed, a health care exclusive PE firm, took Bomi private in 2019 for €70 million, representing its first investment out of MED Platform 1.
- Bomi since that time has closed 15 acquisitions, all the while organic growth spiked to 18% annually, from 6% over the last three years, the firm says.
- Revenues during its investment more than doubled to €300 million in 2022, it adds.
Context: ArchiMed says that with the deal, and following prior portfolio liquidity events, it is poised to return 70% of its money, on a cash-to-cash basis, to MED Platform I's investors.
- MED Platform I — its first mid-cap fund — closed on €1.5 billion including co-investments just three years ago, and is now at 2.2x multiple or a 69% annualized return, the firm says.
- ArchiMed partners with European and North American growth companies, buying majority stakes for anywhere from €50 million to €1 billion
What we're watching: ArchiMed Med Platform II began fundraising in January — and although it has not disclosed a target, the firm says it has raised a "substantial, undisclosed amount" that makes it one of the largest health care buyout funds globally.