Equistone Partners Europe Acquires Majority Stake in Omnicare to Strengthen Its Position in Germany’s Oncology Outpatient Market

On August 15, 2019, VCBeat (WeChat ID: vcbeat) learned that Equistone Partners Europe, a mid-market private equity investor based in Europe, has agreed to acquire a majority stake in Omnicare. Omnicare is a German pharmaceutical wholesaler specializing in the distribution of oncology drugs to compounding pharmacies. The existing management team, led by Managing Director Oliver Tamimi, will continue to operate the company following the closing of the transaction. Financial terms of the acquisition were not disclosed, and the deal remains subject to approval from relevant competition authorities. The transaction is expected to be completed in the fourth quarter of 2019. KPMG (financial advisory) and EY (tax advisory) provided consulting services to Omnicare’s management team.

Omnicare, established in 2002, primarily distributes pharmaceutical products to a network of compounding pharmacies across Germany, serving oncology patients nationwide. Over the years, Omnicare has also significantly expanded its service offerings.

In 2012, Omnicare provided services including quality assurance, cleanroom hygiene monitoring, and professional staff training to highly specialized pharmacies and medical clinics. In early 2019, this service portfolio was further expanded through the launch of the Omnicare Quality Program, which aims to ensure that cancer patients receive safe, high-quality care. Omnicare also established the German Oncology Network, which seeks to structurally strengthen and further develop oncology practices in the best interests of patients.

Today, Omnicare is Germany’s leading outpatient oncology care platform. The solutions provided by Omnicare enable outpatients to access medical services near their place of residence more quickly. With annual sales of approximately €670 million, Omnicare employs 193 staff members across its locations in Unterföhring, Cologne, and Calw, Germany. In 2019, Omnicare projected an annual revenue growth of around 5%.

Dirk Schekerka, Senior Partner and Head of Europe at Equistone, stated: “Omnicare’s business model is designed to provide cancer patients with the highest quality local treatment. We look forward to collaborating with the company, which has strong growth momentum.”

Alexis Milkovic, a partner at Equistone, added, “Omnicare boasts an experienced management team and a talented workforce, which provide a solid foundation for the company’s further growth. As a new shareholder, Equistone will help Omnicare consolidate its market position.”

Omnicare CEO Oliver Tamimi stated, “We have found a reliable and financially strong new partner. With the support of Equistone, Omnicare will continue to grow and provide better services to cancer patients in Germany.”

Equistone Partners Europe is an independent investment firm based in London, specializing in mid-market and change-of-ownership transactions, with operations across France, Germany, Switzerland, and the United Kingdom. Equistone’s European team comprises more than 40 investment professionals, most of whom are equity partners in the firm. Equistone provides financing for management buyouts in France, Germany, Switzerland, and the United Kingdom. The firm also makes selective investments in Belgium and the Netherlands.

(Compiled by Tian Shuhang)