Rhode Island State Investment Commission
CASE STUDY: PROVIDIEN
COMPANY DESCRIPTION
Provider of diversified contract manufacturing and related services to the healthcare industry
PARTNERSHIP DEVELOPMENT & INVESTMENT DYNAMIC
Endeavour partnered with two proven industry veterans to execute a build up strategy in the medical
contract manufacturing industry
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INVESTMENT RATIONALE
Back a proven team to execute a build up & consolidation strategy in an attractive and fragmented industry
Capitalize on industry outsourcing trends by creating a one-stop solution for medical device contract
manufacturing needs
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Endeavour got to know the two executives over a 10 year period, as they successfully grew and exited their
prior healthcare company
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Improve margin profile of acquired businesses, while organically growing blue chip medical device
customer base
ENDEAVOUR
Value Creation & Growth Initiatives
Completed four medical contract manufacturing acquisitions;
three within the first year of forming the Company
▪ Integrated and improved the operations, sales and marketing
functions of smaller acquired companies
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Grew and professionalized a nationwide sales and marketing
function, leading to cross-selling of the Company's integrated
services and expansion in the customer base
Margin growth and a large sales pipeline led to significant
multiple expansion at exit
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EBITDA Growth
Employees
Multiple Expansion
Outcome
Providien was sold to a large strategic acquiror in 2019
Gross MOI (¹)
PROVIDIEN
CCO
4.4x
SET
+ 125% (over life of investment)
Created 400 new jobs
+ 10.0x (EBITDA multiple)
(1) Includes the performance of a medical device developer that was acquired alongside the contract manufacturing strategy. Fund V remained invested in this division as of 12/31/2019.
This case study is being provided at the request of the Rhode Island State Investment Commission. The case study is not intended to be exhaustive and certain case studies have not been included, which, if included,
would yield different results. Please see important definitions and disclaimers sections in this document.
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