Warburg Pincus has acquired a 50% co-control stake in Polyplus from ArchiMed, executing a flagship LBO in the European mid-cap space. The transaction structure is characterized by a significant reinvestment from the incumbent sponsor, ArchiMed, ensuring that both private equity firms hold equal equity stakes and voting rights post-closing. To finance this acquisition, a bespoke unitranche debt facility was arranged and provided by Tikehau Capital and Goldman Sachs. The definitive agreement was signed following supreme execution certainty and intense competitive tension prior to the pandemic-induced market slowdown. For the incoming sponsor, this transaction represents a highly sought-after platform investment in the resilient and fast-growing bioprocessing sector. The deal allows the sponsors to capitalize on the secular growth of gene and cell therapies, as well as an intensified global focus on vaccine development. ArchiMed’s decision to roll over significant equity highlights a strong conviction in the asset's continued value-accretive trajectory and untapped international potential. By joining forces, the consortium provides Polyplus with extensive financial backing and dry powder to accelerate its geographical expansion, scale up its manufacturing capabilities, and potentially drive sector consolidation through targeted add-on acquisitions. The target has demonstrated exceptional financial momentum, underpinned by a highly scalable business model. This landmark transaction establishes a robust benchmark valuation for premium life sciences suppliers. The intense competitive dynamic during the auction process, coupled with the ability to secure unitranche financing from premier lenders, underscores the sustained appetite of mega-cap funds for high-quality, non-cyclical healthcare assets.

POLYPLUS, which reported an EBITDA margin of LOGIN in 2020, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level around LOGIN higher than the average currently observed in the Healthcare & Pharma sector (13.3x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.