SECTOR REPORT

Nutraceuticals Industry
April 2013

Discussion Outline

Market Overview

Current Market Dynamics

Global Growth Drivers

International Market Dynamics

Market Comps

10

Trading Comps
Select Transaction Profiles

M&A Activity

16

Industry Outlook

19

In Summary

22

Firm Overview

24

Nutraceutical Tearsheet
Market Dynamics(1)

Geographic Distribution of M&A Deals by Region

Global market reached $142.1 billion in 2011

The U.S. offers the most active market, but developing
countries show signs of rapid growth
Increased safety, regulation, and compliance
requirements are increasing costs globally

6% 2% 1%

Europe
16%

Asia/Pacific

75%

Industry Outlook(1)

U.S. and Canada

Latin America
Africa/Middle East

Global market expected to reach $204.8 billion by 2017

(Anticipated CAGR of 6.4%)
Industry consolidation is expected to continue to drive
M&A growth within the industry

Source: Bourne Partners Proprietary Research, CapitalIQ, January 2013

Number of M&A Deals by Period Since 2009

47

50

Trading & Transaction Comps(2)

45

40

Enterprise Value Multiples

Average EBITDA Multiple: 13.8x in 2012
Average Revenue Multiple: 2.2x in 2012
Total number of deals: 81 in 2012
Most active regions:
U.S. (75%) and Europe (16%)
Stock Performance relative to 2012 benchmarks
Performance relative to S&P 500: +9%
Performance relative to Healthcare Sector: +3%

35
30

30

31

31

31

1H10

2H10

1H11

2H11

34

25

25
20

17

15
10
5
0

Source:
(1) Transparency Market Research: Nutraceuticals Product Market: Global Size, Segment and Country
Analysis & Forecasts (2007-2017), February 2012
(2) Bourne Partners Proprietary Research, CapitalIQ, January 2013

1H09

2H09

Source: Bourne Partners Proprietary Research, CapitalIQ, January 2013

1H12

2H12

Market Overview

Nutraceutical Market Overview

The nutraceutical market is comprised of foods, beverages, ingredients, and dietary supplements that have or are
intended to have a health benefit to consumers.

Weve split the market into three distinct categories:

Functional foods/beverages (probiotic yogurts)

Dietary supplements (protein powders)

Nutraceutical ingredients (raw minerals or oils)

Global market reached $142.1 billion in 2011 and is expected to eclipse $250 billion by 2018

Global population of individuals over 60 years of age expected to reach 1 billion by 2020, 70% of which will be
living in developed nations driving Anti-aging and age-defying products to higher product visibility

Increases in global heathcare costs led more individuals to focus on preventative care, self diagnosis, and self
medication.

The nutraceutical market is being utilized to augment an increasingly robust OTC market, and growing competition
among market participants has led to industry consolidation and a frothy M&A environment

High growth rates and attractive margins have fueled interest from Big Pharma/Food companies, eager to enter
the market through strategic acquisition

Source: Nutraceuticals: A Global Strategic Business Report, Global Industry Analysts, July 2012

Growth of Specialty Functional Foods

Industry Trends

Consolidation within the industry expected to continue

International growth across the industry expected to continue as developing countries increase nutraceutical consumption

Domestic growth expected to continue as novel products and new target segments are leveraged by domestic producers,
including high growth specialty foods focused on probiotics and heart health

Continued concerns over naturalness, increased global regulation, and concerns about safety due to overseas manufacturing
could stifle growth

Aging global population and rising healthcare costs have shifted consumer focus to healthier living, preventative care, and
secondary source diagnosis/medication

Probiotics

Heart Health

Global market projected to reach $39.6 billion by 2018

Global market projected to reach $15.2 billion by 2018

Growth driven by:

Growth driven by:

Enhanced efficiency of ingredients

Increased application in new areas

Heightened consumer awareness

Women represent the largest target market for growth within

probiotics

Increased availability in both dietary supplements and

functional foods (e.g. yogurts and other dairy products) has
allowed more consumers to access probiotics

New and novel food products (from smoothies to salad

dressings) currently in development to meet rising demand in
the market

Source: Nutraceuticals: A Global Strategic Business Report, Global Industry Analysts, July 2012

Increase in prevalence of heart disease and healthconscious consumers

Growth within Asia-Pacific region expected to be nearly 15%

CAGR

Increasing costs of prescription drugs for management of

cardiovascular conditions

Major global food companies leading the charge, but some new
products are purely innovations in marketing and not necessarily
product development

Improved diagnostics are leading to earlier diagnosis of heart

disease making patients better able to manage their conditions,
with patients focusing on cholesterol reduction and management

Current Market Dynamics

Global Growth Drivers

Aging World Population

Increases in Disposable Income

Over 500 million, or roughly 8% of people

worldwide, are over the age of 65
This age group is expected to account for 13% of
the population by 2030
Most rapid increases in elderly occurring in
developing countries
However, largest populations by number are
projected to remain in developed nations

Gradual economic recovery in the United States

and across Europe has consumer sentiment
rising and disposable income returning to preeconomic crisis levels
Likewise, developing nations are experiencing
rapid growth in their middle classes, which
translates to increased disposable income
because of typically regressive tax structures

China's Growing Disposable Income - 1,000

RMB

Percent of World Population over 65

25.0%
25
20.0%
20
15.0%
15
10.0%
10

5.0%
5
2050

2040

2030

2020

2010

2000

1990

1980

1970

1960

1950

1940

1930

1920

1910

1900

0.0%

0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: March 2013 Enigma Report, Academy of Market Intelligence

Source: U.S. State Department and United Nations Department of Economic and Social Affairs

International Market Dynamics

Europe

Asia/Pacific Region

Increased government regulation and arduous approval processes

stifling innovation
In lieu of introducing new ingredients, European companies are
focusing on rebranding and expanding product offerings for currently
approved ingredients

Latin America

Underserved markets could spur growth in the region as disposable

income increases

Asia/Pacific(1)

Currently the Asia/Pacific regions market share is only surpassed by the U.S. dominated North America region
Regional market share as a whole is expected to surpass North Americas market share by 2017
China
Expected to be the largest consumer of nutraceutical ingredients by 2020
Growth in China expected to be fueled by the rapidly growing middle class and its disposable income
Japan
Currently the second largest individual consumer of nutraceuticals (behind the U.S.)
As its middle class continues to expand, China should eclipse Japanese consumption within the next few years
India and Indian Subcontinent
Unlike its regional neighbors, Indias market share growth is not expected to come from dietary supplements
However, functional beverages are expected to drive growth throughout the subcontinent

Source: World Nutraceutical Ingredient Industry, Freedonia, November 2011

Market Comps

NutraceuticalTrading Comps
USD in millions, except for per-share amounts
LTM

4/1/2013
Shares
Out

Equity
Value

CYE

Company

Ticker

Share
Price

Net Debt
(Cash)

Enterprise
Value

Sales

EBITDA

EBIT

EPS

Sales

EBITDA

CYE
EPS

CYE+1
EPS

Book
Value

Atrium Innovations Inc.

TSX:ATB

$12.14

31.3

$380.5

$269.9

$650.4

$437.5

$87.4

$77.5

$1.33

$461.1

$91.0

$1.65

$1.79

$14.2

Keck Seng Malaysia Bhd

KLSE:KSENG

1.66

360.2

598.3

(244.2)

354.1

345.2

33.4

24.6

0.06

0.0

0.0

0.00

0.00

1.7

Herbalife Ltd.

NYSE:HLF

37.35

103.1

3,850.3

156.1

4,006.4

4,072.3

735.8

661.4

3.62

4,617.2

792.7

4.68

5.44

3.9

Lifevantage Corporation

NasdaqCM:LFVN

2.33

113.7

264.9

(28.5)

236.4

187.1

22.1

21.1

0.09

0.0

0.0

0.00

0.00

0.3

Medifast Inc.

NYSE:MED

22.95

13.8

316.0

(55.7)

260.3

356.7

41.4

30.2

1.39

390.1

47.8

1.77

2.11

6.6

Nature's Sunshine Products Inc.

Nutraceutical International
Corporation

NasdaqCM:NATR

15.18

15.8

240.0

(75.7)

164.4

367.5

38.1

34.0

1.42

0.0

0.0

0.00

0.00

7.3

NasdaqGS:NUTR

16.98

9.7

165.4

35.3

200.6

203.5

35.8

26.7

1.58

206.1

0.0

1.71

1.81

12.7

USANA Health Sciences Inc.

NYSE:USNA

48.88

13.5

659.9

(70.8)

589.0

648.7

107.0

98.2

4.23

712.2

119.0

5.18

5.58

13.4

Margin Anlysis
FYE

Gross
Profit

EBITDA

EBIT

Sales

LTM

CYE

CYE+1

Price to
Book

1.4 x

9.2 x

7.4 x

6.8 x

0.9 x

NM

28.8 x

NM

NM

1.0 x

6.1 x

0.9 x

10.3 x

8.0 x

6.9 x

9.5 x

10.7 x

11.2 x

NM

26.1 x

NM

NM

7.6 x

0.7 x

6.3 x

8.6 x

0.7 x

16.5 x

13.0 x

10.9 x

3.5 x

9.3%

0.4 x

4.3 x

4.8 x

NM

10.7 x

NM

NM

2.1 x

17.6%

13.1%

1.0 x

5.6 x

7.5 x

1.0 x

10.8 x

10.0 x

9.4 x

1.3 x

16.5%

15.1%

0.9 x

5.5 x

6.0 x

0.8 x

11.6 x

9.4 x

8.8 x

3.6 x

Company

Ticker

Atrium Innovations Inc.

TSX:ATB

31-Dec

1-Apr-13

51.2%

20.0%

17.7%

1.5 x

Keck Seng Malaysia Bhd

KLSE:KSENG

31-Dec

1-Apr-13

15.7%

9.7%

7.1%

1.0 x

Herbalife Ltd.

NYSE:HLF

31-Dec

1-Apr-13

47.2%

18.1%

16.2%

1.0 x

Lifevantage Corporation

NasdaqCM:LFVN

30-Jun

1-Apr-13

81.9%

11.8%

11.3%

Medifast Inc.

NYSE:MED

31-Dec

1-Apr-13

75.1%

11.6%

Nature's Sunshine Products Inc.

Nutraceutical International
Corporation

NasdaqCM:NATR

31-Dec

1-Apr-13

74.6%

NasdaqGS:NUTR

30-Sep

1-Apr-13

USANA Health Sciences Inc.

NYSE:USNA

29-Dec

1-Apr-13

* All estimates from Capital IQ

NM - not meaningful

P/E

Enterprise Value/

Data
as of

EBITDA

EBIT

Sales CYE

7.4 x

8.4 x

10.6 x

14.4 x

5.4 x

1.3 x

8.5%

10.4%

49.6%
82.1%

Median

62.9%

14.2%

12.2%

1.0 x

5.9 x

8.0 x

0.9 x

11.2 x

9.4 x

8.8 x

2.8 x

Mean

59.7%

14.4%

12.3%

1.0 x

7.0 x

8.4 x

0.9 x

15.5 x

9.5 x

8.5 x

3.7 x

Min

15.7%

9.7%

7.1%

0.4 x

4.3 x

4.8 x

0.7 x

9.2 x

7.4 x

6.8 x

0.9 x

Max

82.1%

20.0%

17.7%

1.5 x

10.7 x

14.4 x

1.4 x

28.8 x

13.0 x

10.9 x

9.5 x

The nutraceutical industry is extremely attractive given the relatively high gross profit margins and EBITDA margins

The average enterprise value of the selected nutraceutical stocks indicates that the segment generally trades at 1x revenue

Source: Bourne Partners Proprietary Research, CapitalIQ, April 2013

11

Nutraceutical Trading Performance

150.00%

Nutraceuticals Index

130.00%
110.00%
90.00%
70.00%
50.00%

S&P 500 Index

30.00%
10.00%
-10.00%

S&P Healthcare Index

-30.00%
-50.00%

S&P 500 Index

S&P 500 Healthcare Index

Nutraceuticals Index*

Over the last three years, publicly traded nutraceutical companies have outpaced both the S&P 500 and the S&P Healthcare
Sector as a whole, most notably during the 2011 and early 2012

The drastic plunge in the Nutraceuticals Index coincides with a dramatic plunge in the value of Herbalife stock following
earning call questions made by David Einhorn regarding the companies distributors
*Nutraceuticals Index is comprised of the companies in the trading multiple basket from slide 11; Bourne Partners Internal Research, CapitalIQ, April 2013

12

Nutraceutical Transaction Comps

Announced
Date
Target

Buyer

Geographic
Location
United
States
United
States
United
States
United
States

Enterprise
Value

LTM
Revenue

LTM
EBITDA

EV / LTM EV / LTM
Revenue EBITDA

$46.0

$25.0

NA

1.8x

NA

634.0

270.0

70.0

2.3x

9.1x

1,433.0

285.8

43.0

5.0x

33.3x

723.3

198.5

48.6

3.6x

14.9x

Poland

20.9

13.7

NA

1.5x

NA

Mar-13

Triarco Industries, Inc.

Innophos Holdings

Dec-13

Fortitech, Inc.

Royal DSM N.V. (ENXTAM:DSM)

Nov-12

Schiff Nutrition International Inc.

Reckitt Benckiser LLC

Aug-12

Avid Health, Inc.

Church & Dwight Co. Inc. (NYSE:CHD)

Aug-12

Farma-rojeckt Sp. z o.o.

Recordati SpA (BIT:REC)

Jul-12

Laboratorio Franco Colombiano Lafranscol S.A. CFR International SpA

Colombia

562.0

200.0

NA

2.8x

NA

Jul-12

FIT-Bioceuticals Limited

Blackmores Limited (ASX:BKL)

Australia

40.9

40.0

NA

1.0x

NA

May-12

Swiss Herbal Remedies Limited

Valeant Pharmaceuticals International, Inc.

(TSX:VRX)

Canada

20.6

21.2

NA

1.0x

NA

May-12

Airborne, Inc.

Schiff Nutrition Group, Inc.

122.9

69.2

13.2

1.8x

9.3x

Apr-12

Pfizer Nutrition Brand

Nestle S.A. (SWA: NESN)

11,850.0

2,418.4

598.5

4.9x

19.8x

Feb-12

Probioticx Laboratorios Ltd.

Valeant Pharmaceuticals International, Inc.

(TSX:VRX)

Brazil

86.3

42.9

NA

2.0x

NA

Jun-11

Myprotein, Inc.

The Hut Group Ltd.

United
Kingdom

95.3

25.0

NA

3.8x

NA

Jun-11

Seroyal International Inc.

Atrium Biotech Investments, Inc.

Canada

111.1

40.0

NA

2.8x

NA

Dec-10

Martek Biosciences Corporation

Royal DSM N.V. (ENXTAM:DSM)

1,024.1

450.0

123.2

2.3x

8.3x

Jul-10

NBTY, Inc.

Carlyle Partners V, L.P.; The Carlyle Group

(NasdaqGS:CG)

3,784.6

2,826.3

480.6

1.3x

7.9x

122.9
1,370.3
11,850.0
20.6

69.2
461.7
2,826.3
13.7

70.0
196.7
598.5
13.2

2.3x
2.5x
5.0x
1.0x

9.3x
14.7x
33.3x
7.9x

United
States
United
States

While enterprise value to revenue multiples are fairly consistent

and average 2.5x, enterprise value to EBITDA multiples are
somewhat skewed by the Schiff deal. Nevertheless, we believe
that the median multiple is right in-line with typical transactions.

United
States
United
States

Median
Mean
High
Low

NA - Not Available
NM - Not Meaningful

Source: Bourne Partners Proprietary Research, CapitalIQ, April 2013

13

Select Transaction Profiles

Triarco Industries

Pfizer Nutrition Brand

Schiff Nutrition International

Announce Date: January 2013

Announce Date: April 2012

Announce Date: November 2012

Acquirer: Innophos Holdings (Nasdaq: IPHS)

Acquirer: Nestle S.A. (SWX:NESN)

Acquirer: Reckitt Benckiser Group (LSE:RBL)

Region: United States

Region: Global

Region: United States

Enterprise Value: $46 million

Enterprise Value: $11.85 billion

Enterprise Value: $1.4 billion

Revenue Multiple: 1.8x

Revenue Multiple: 4.9x

Revenue Multiple: 5.0x

EBITDA Multiple: N/A

EBITDA Multiple: 19.8x

EBITDA Multiple: 33.3x

Target Description

Target Description

Target Description

Specialize in botanical and enzyme based

ingredients

Transaction Overview:

Manufacturer of high quality custom

nutraceutical ingredients for both food and
beverage.

Innophos subsidiary purchased all of

Triarcos assets for $45 million in cash and
an additional $1 million in equity
Deal includes benchmark payments for
the completion of growth objectives during
the first 2 years

Strategic Rationale:

Triarco pairs well with recent Innophos

acquisitions AMT (2012) and Kelatron
(2011), which gives the company a full
complement of nutraceutical ingredient
manufacturing capabilities

Pfizers global infant nutrition business

Vitamin Supplement manufacturer

Sizeable market share in developing

countries including China and India

Brands include Move Free and MegaRed

Transaction Overview:

Nestle won out over French rival Danone

in a fierce back-and-forth bidding battle
that drove up transaction multiples

Deal involves several regulatory hurdles,

which may force Nestle to sell off business
units in certain regions to avoid antitrust
issues

Strategic Rationale:

The acquisition strengthens Nestles

presence in Asian/Pacific markets with a
combined business market share of 10%
in China and nearly 30% in the Middle
East.

14

Transaction Overview:

Reckitt made a bid to purchase the

outstanding shares of both class A and
class B stock for $42 a share (an 81%
premium over pre-offer share price)

Reckitt will finance the purchase with cash

and previously acquired credit facilities

Reckitts bid exceeded a previously

announced offer by Bayer AG

Strategic Rationale:

The acquisition of Schiff helps round out

Reckitts nutraceutical portfolio, which
currently includes Adams Respiratory
Therapeutics products and Scholl foot
products

Schiff Nutrition Acquisition

Details

Acquirer: Reckitt Benckiser Group (LSE:RBL)

Region: United States
Enterprise Value: $1.4 billion
Revenue Multiple: 5.0x
EBITDA Multiple: 33.3x

Timeline

October 26, 2012: Schiff shares close at $23.19 per share

October 30, 2012: Bayer agrees to buy Schiff for $34 a share
November 16, 2012: Reckitt Benckiser makes unsolicited offer of $42 a share
November 20, 2012: Bayer informs Schiff it will not raise its bid
December 17, 2012: Reckitt successfully completes purchase of Schiff

Interesting Deal Dimensions

All was not lost for Bayer

When the initial deal was negotiated, Bayer agreed to give Schiff a 30 day
window in which to accept a higher unsolicited offer
However, it also negotiated for a $22 million break up fee
Bidding duels between potential suitors are driving multiples through the roof
Reckitt paid a 24% premium over Bayers original bid and what ultimately
amounted to an 81% premium over the pre-offer share price
Reckitts not the only one driving up the mutliples on companies its looking to
acquire. Nestle and Danone recently went toe to toe over Pfizer Nutrition
resulting in a near 20x EBITA multiple

15

M&A Activity

Industry M&A Activity in General

M&A has become both a viable and very popular exit strategy for capital or resource constrained
private companies

Many of the larger companies are able to leverage their balance sheets in order to enter new
markets as opposed to investing time and capital into research and development

A growing number of acquisitions have been forecast to be nearly immediately acccretive, leading
to rising share prices not only for the acquiree but also for the acquirer

On a geographic basis there appears to be an increasing focus on emerging markets by U.S. and
European companies seeking to enter these markets for production, sourcing, and sales

17

Nutraceutical IPO and M&A Activity

Nutraceutical IPO and M&A Transactions
120
100

Total Transaction Volume

200

Public Nutraceutical Companies Acquired/Merged

180
160

Private Nutraceutical Companies Acquired/Merged

140

80

Initial Public Offerings of Nutraceutical Companies

120

60

100
80

40

60
40

20

20
0

2000

2001

2002

2003

2004

2005

2000 2001 2002

Public Nutraceutical Companies
Acquired/Merged
Private Nutraceutical Companies
Acquired/Merged
Initial Public Offerings of
Nutraceutical Companies
Total

2006

2007

2003 2004 2005

2008

2006

2009

2007 2008

2010
2009

2011

2010

2012

2011

2013 YTD

2012 2013 YTD

18

16

17

14

11

13

14

22

10

26

26

30

40

36

67

107

98

99

72

95

81

83

12

14

17

20

20

35

16

44

75

74

51

11

42

39

40

58

51

105

143

150

129

127

183

169

156

33

Drastic increases in the mid-to-late 2000s gave way to a decline during the recession. However, increases in IPOs have
fueled M&A growth and we expect transaction volume to exceed pre-recession levels in 2013
Note: 2013 YTD through March 16, 2013; Bourne Partners Internal Research

18

Industry Outlook

Nutraceutical Industry Outlook

Global market is expected to eclipse $250 billion by 2018(1)

Industry consolidation expected to continue as Big Pharma/Food acquire smaller industry participants in order to
reduce competition and enter new market segments
Market Forces Affecting Growth
Headwinds

Tailwinds

Potential for increased industry regulation around

the globe

Aging population and increase in health

conscious consumers

Growing concerns over product safety as

production and manufacturing move overseas

Slower growth in dominant segment of the U.S.

market:
Herbal supplement growth waning
Safety concerns over some weight loss and
energy boosting products may stagnate growth
in more mature markets

Asia/Pacific Growth:
Developing markets showing rapidly
increasing consumption of functional foods
and beverages
Increase in disposable income

Domestic Growth:
Dramatic expansion of product offerings and
ingredient delivery methods
New dietary supplement categories helping
to stem declining growth in the overall
segment

Source:

(1) Nutraceuticals:

A Global Strategic Business Report, Global Industry Analysts, July 2012

20

Domestic Outlook
Functional Food and Beverage(1)

74% of Americans believe that natural means healthier

Functional foods:
Greek yogurt, coconut water, and snacking nuts
Increase in free foods (e.g. gluten free and lactose free)
Omega and fatty acid fortified foods
Functional Beverages:
Dramatic increase in availability and options for fruit and vegetable juice drinks
Market for dairy and non-dairy products fortified with probiotics shows promise for future revenue growth
Carbonated and non-carbonated energy drinks and shots continue to dominate the functional beverage category

Dietary Supplements(2)

Slowdown in sales of dietary supplements that skyrocketed in the 90s has been augmented by:
Non-herbal supplements
Sports related and performance enhancing supplements
Weight loss and management supplements
Currently largest segment of nutraceuticals in the U.S., but other segments rapid growth outpacing dietary supplements

Ingredients(3)

Ingredients alone expected to balloon to $23.7 billion by 2015

Proteins and peptins continue to lead ingredient growth in the U.S.

Source:
(1) 10 Key Trends in Food, Nutrition, and Health 2013, New Nutrition Business
(2) Nutraceuticals: A Global Strategic Business Report, Global Industry Analysts, July 2012
(3) World Nutraceutical Ingredient Industry, Freedonia, November 2011

21

In Summary

Nutraceutical Industry Summary

As developing markets continue to expand, nutraceutical products will become a larger portion of disposal income spend
(especially in the Asia/Pacific region).

An aging world population and rising healthcare costs will continue to drive consumers to healthier and less costly alternatives
to their current dietary habits and promote better health

Larger players within both pharmaceuticals and food production will continue to snatch up unique companies in an effort to
either enter new markets or augment current product offerings

Market Attractiveness

Revenue multiples and EBITDA multiples continue to fluctuate due to the breadth of deal size and economic downturns
during the observation period. This is especially true in the past few years, which include very large outlier transactions.
Median Enterprise Value to Revenue Multiple

2.1x

Median Enterprise Value to EBITDA Multiple

17.0x

Average over time span: 1.6x

1.9x

Average over time span: 11.0x

15.0x

1.7x
13.0x

1.5x
1.3x

11.0x

1.1x

9.0x

0.9x
7.0x

0.7x
0.5x

5.0x
2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

23

2002

2001

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

Source: Bourne Partners Internal Research, Capital IQ March 2013

Firm Overview

Bourne Partners Information

Life Sciences Merchant Bank

Geographic Coverage

Investment banking advisory

Direct investing
Operational and management consulting

Segmentation

Healthcare services
Specialty pharmaceuticals
Consumer Heath
Medical technology (devices)
Distribution
Dots represent the countries where the
Bourne Partners team has transaction experience

Advisory Services

Mergers & Acquisitions

Business Development Support Services

Company and product focus

Primarily sell side with select buy side assignments
$10 250 million transaction focus
In/out-licensing of late stage and approved products
United States, European and Asian companies focused on partnering locally or in international markets

Capital Raising

Mature spaces of healthcare (OTC, Specialty Pharmaceuticals, Generics, Medical Devices, Services)
$10 - 250 million raises
Debt and equity
Active calling effort on 75+ healthcare focused private equity and venture capital groups

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Bourne Partners Information

Direct Investing

Select Advisory Clients & Involved Parties

Enterprise values of $10 $250 million

Direct portfolio companies
Co-invests with other sponsors
Buyout and venture fund commitments

Ventures

Senior Deal / Operations-focused Resources

Senior level attention and involvement in
every project
Mix of investment professionals and
healthcare executives
Over $5 billion in transactions completed
globally
Operations members provide enhanced
support across investment life cycle and
can fill management roles on transitional
or permanent basis
Global Perspective

Representative Active Role Investments

Representative Passive, Fund, & Co-Investments

Active contact and tracking of pharmaceutical

and nutraceutical companies worldwide, with
particular focus in the following regions:
United States
Latin America
Transaction experience or partner
relationships in 15 countries within the
region

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Bourne Partners Structure

Investment Banking
& Advisory

Financial
Advisory

Direct
Investment

Mergers &
Acquisitions

Seller Representation
Acquisitions
Divestitures
Asset Spinouts

Capital Sourcing/
Private Placements

Recapitalizations
Management Buyouts
Growth Capital

Business
Development
Services

Advisory
In/Out-licensing
Strategic Studies
Strategic Consulting

Controlling
Active
Investments

BurnsAdler Pharmaceuticals
Theramed Corporation
Tanner Pharmaceuticals

Private Equity
Funds

Minority/
Co-Invest

Private Equity &

Direct Investment

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Irving Place Capital

(2 funds)
The Carlyle Group
(10 funds)

King Pharmaceuticals
Covis Pharma
Warner Chilcott (IPO)
Plainfield Energy
CommScope

Senior Team
Bourne Partners is comprised of experienced investment professionals, healthcare executives, and operating partners

Banks Bourne
Chief Executive Officer

Minor Hinson
Chief Investment Officer

Jeremy Johnson
Managing Director

Bill Taylor
Director of Legal Affairs

Molly Bourne
Director

Over 50 years of combined pharmaceutical, medical device, biotechnology, and life sciences healthcare experience

Over 60 years of combined investment banking and private equity transaction experience

Transactions completed in more than 35 countries

Mergers & Acquisitions

Distribution Agreements

Strategy Consulting

Licensing Agreements

Corporate Spin-offs

Fund Management

Product Divestitures

Capital Raising

Direct Investing

Office Information

Contact Details

1111 Metropolitan Avenue, Suite 325

Jeremy Johnson

Charlotte, North Carolina 28204

Managing Director

www.bourne-partners.com

704-714-8351

Tel: 704-552-8407

jjohnson@bourne-partners.com

Fax: 704-714-8363

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