Biomnis
Founded in 1897, Biomnis, formerly Laboratoire Marcel Mérieux, is a provider of pathological analysis in the fields of molecular diagnostics, tissue, fertility treatment and specialised biochemistry. It provides services on behalf of laboratories throughout France, operating two specialist sites in Paris and Lyon, with further sites in Paris, Lyon, Bordeaux, Dublin and Dubai. The group also owns a fully integrated logistics operation, TSE, handling five million samples per annum, collected daily throughout France. Biomnis has revenues of more than €220 million and employs over 1,600 staff, a large proportion of whom are highly skilled scientists and biologists.
The Market
The specialist medical diagnostics market is extensive and valued at more than €6.5 billion. It is also one of the fastest growing segments of the Healthcare sector with continuing focus on illness prevention rather than cure. Within this market, Biomnis is the natural partner for over 4,000 local laboratories throughout France, providing opportunities for organic growth. The sub-sector that Biomnis operates within is worth €350 million and growing at 5% per annum.
Management
The current CEO, Jean-Louis Oger, will become non-Executive Chairman for the company. Pierre-Yves Guiavarch is joining the company as CEO having forged a strong reputation within the French Healthcare market whilst at Générale de Santé, the largest Healthcare service group in France. Duke Street Operating Partners, Charles Woler and Thierry Paternot, will act as non-Executive Directors.
Strategy
Together with management, we have identified several opportunities to accelerate Biomnis’ growth, including introducing a comprehensive profitability plan which will bring the company’s profit margins in line with competitors. In addition, we will seek to achieve organic growth through generating more business from large pharmaceutical companies and public hospitals, whilst also expanding current operations in Dubai, Dublin and potentially throughout Europe.
Origination
Unusually for Duke Street, Biomnis was acquired through an auction process. However, the strong relationship we developed with the incumbent CEO, Jean-Louis Oger, meant we were able to work closely with the management team over a number of months to carry out extensive due diligence and to develop the appropriate plan for the business in conjunction with the proposed new CEO, Pierre-Yves Guiavarch.
Exit
The company’s leading market position allied with improved profit margins will make it a highly attractive asset to trade buyers looking to diversify into this specialised segment of the Healthcare sector.