Equistone to acquire a majority stake in Omnicare

Equistone Partners Europe (“Equistone”), one of Europe’s leading mid-market private equity investors, has agreed to acquire a majority stake in Omnicare (“Omnicare” or (“the company”), a pharmaceutical wholesaler operating throughout Germany, that primarily distributes finished medicinal products to compounding pharmacies for the patient-specific production of cancer drugs. Omnicare is being bought from a consortium of shareholders which will retain a stake in the company. The existing management team, led by Managing Director, Oliver Tamimi, will continue to run the company following the deal. The financial terms of the transaction are undisclosed and the acquisition remains subject to clearance from the relevant competition authorities. The transaction is expected to be complete in Q4 2019.

Omnicare was founded in 2002 to distribute the products of pharmaceutical companies to a nationwide network of compounding pharmacies that serve oncological patients across Germany. Since then, the company has expanded its services significantly. In 2012, Omnicare developed important services for highly-specialised pharmacies and medical clinics in quality assurance, monitoring cleanroom hygiene and for the training and development of specialist staff. In early 2019, these services were extended through the creation of the Omnicare Quality Initiative, which aims to ensure the safe and high-quality care of oncology patients. In 2018 Omnicare also established the German Oncological Network of leading oncology practices which it has since continued to expand. The aim of this network is to structurally strengthen and further develop oncological practices in the interests of patients. Today, Omnicare is a leading platform for outpatient oncology care in Germany providing a solution that enables outpatients to more quickly access specialist medicine and services close to where they live. Omnicare generates annual sales of around €670m and employs 193 staff in Unterföhring, Cologne and Calw. In 2019 Omnicare will achieve projected revenue growth of around 5%.

Dirk Schekerka, Senior Partner and DACH Country Head at Equistone, said: “Omnicare’s business model aims to contribute to the delivery of the highest quality, local treatment for cancer patients. We look forward to partnering with the company as it continues to grow and serve this important function.”

Alexis Milkovic, Partner at Equistone, added: “Omnicare is a market leader with an experienced management team and excellent employees. These are strong foundations to help secure the company’s further development. As a new shareholder, Equistone will support Omnicare in strengthening and sustainably consolidating its market position.”

Oliver Tamimi, Chief Executive at Omnicare, says: “In Equistone we have found a reliable and financially-strong new partner to help us realise the further development of our company. With Equistone’s support, we want to continue improving the local and outpatient care for cancer patients in Germany.”

Dirk Schekerka, Alexis Milkovic and Julia Brunswicker led the transaction on behalf of Equistone. The firm was advised by P+P (Legal & Tax), Alvarez & Marsal (Commercial), Deloitte (Financial), Houlihan Lokey (Financing), Dechert (Trust), Shearman & Sterling (Legal Financing) and ETS (Insurance).

Omnicare’s management team was advised by Hengeler Müller (Legal and Trust), BCG (Commercial), KPMG (Financial), EY (Tax), Lincoln International (M&A) and Honert & Partner (MEP).