Page 37 Bain Capital Helthcare
P. 37
37
Bain Capital
Healthcare
By 2017, after two world wars
and decades of pan-European
expansion, STADA’s business was
vast, idiosyncratic, geographically
siloed, riven with legacy practices and
structures, and in need of significant
investment.
Following years of activist agitation,
the 122-year-old company selected
Bain Capital and a consortium partner
to take the company private and
reposition the provider of generic and
over-the-counter medicines for growth.
“Our European colleagues had spent
many years building relationships and
understanding the local pharmaceutical partnered with management to drive
markets,” says Andrew Kaplan, a
Partner on the North American Private
Equity team. “The U.S. team brought a
deep understanding of the market for
generics and how those markets were
likely to evolve over time.”
Bain Capital’s roadmap to success
for STADA included a blueprint to
focus on top-line growth and margin
improvement. A string of investments
in product acquisitions followed. The
combined moves helped revenue
expand from 3 percent per year to
nearly 8 percent, achieving market
share gains.
Most importantly, Bain Capital has
a “one-STADA” culture of collaboration
and common business practices
such as centralized procurement
and consistent business intelligence
systems, a uniformity that was missing
in its publicly listed days.
“We saw a massive opportunity to
invest in people and systems to run the
business better, to unlock Stada’s full
potential,” says Ben Kunstler, a Partner
on the European Private Equity team.
“When we underwrote the investment,
we underwrote it for the way it could
be, not the way it was. That’s what we
do.”
STADA lab workers, 1954 vs. 2020. The company was founded in 1895 by self-described “forward-looking pharmacists.”
Bain Capital
Healthcare
By 2017, after two world wars
and decades of pan-European
expansion, STADA’s business was
vast, idiosyncratic, geographically
siloed, riven with legacy practices and
structures, and in need of significant
investment.
Following years of activist agitation,
the 122-year-old company selected
Bain Capital and a consortium partner
to take the company private and
reposition the provider of generic and
over-the-counter medicines for growth.
“Our European colleagues had spent
many years building relationships and
understanding the local pharmaceutical partnered with management to drive
markets,” says Andrew Kaplan, a
Partner on the North American Private
Equity team. “The U.S. team brought a
deep understanding of the market for
generics and how those markets were
likely to evolve over time.”
Bain Capital’s roadmap to success
for STADA included a blueprint to
focus on top-line growth and margin
improvement. A string of investments
in product acquisitions followed. The
combined moves helped revenue
expand from 3 percent per year to
nearly 8 percent, achieving market
share gains.
Most importantly, Bain Capital has
a “one-STADA” culture of collaboration
and common business practices
such as centralized procurement
and consistent business intelligence
systems, a uniformity that was missing
in its publicly listed days.
“We saw a massive opportunity to
invest in people and systems to run the
business better, to unlock Stada’s full
potential,” says Ben Kunstler, a Partner
on the European Private Equity team.
“When we underwrote the investment,
we underwrote it for the way it could
be, not the way it was. That’s what we
do.”
STADA lab workers, 1954 vs. 2020. The company was founded in 1895 by self-described “forward-looking pharmacists.”
