DevCo closes a 616 MEUR long-term single-asset investment vehicle for Medix Biochemica

• DevCo has completed a strategic capital raise for its long-term investment in Medix Biochemica
• Following the capital raise, DevCo’s single-asset investment vehicle for Medix Biochemica has total long-term commitments of 616 MEUR
• The capital raise was led by Council Ring Capital, a Chicago-based, single-family office investing in growing businesses across the healthcare, technology, and consumer sectors. Other major investors in the capital raise included, among others, Security Trading (the investment company of Antti Herlin’s family) and cornerstone investor Coller Capital
• Medix Biochemica, a leading independent provider of critical biological raw material products for the in vitro diagnostics industry, has developed rapidly during the first six years of DevCo’s ownership
• The raised capital enables Medix Biochemica to continue execution of inorganic growth initiatives alongside active organic development in accordance with the company’s growth strategy

3 September 2024, Helsinki, Finland – DevCo Partners Ltd (“DevCo”) is pleased to announce a capital raise resulting in 616 MEUR of total commitments for its long-term single asset investment vehicle for Medix Biochemica. The transaction, as part of which ca. 300 MEUR of new investments were raised to the investment vehicle, provides DevCo with significant additional capital for continued support of the long-term growth strategy of Medix Biochemica. The new capital was provided by a strong group of investors including, among others, lead investor Council Ring Capital and Antti Herlin (who has been a major anchor investor in the vehicle before the capital raise) as well as cornerstone investors Coller Capital and pension funds Keva, VER and Elo. Existing longstanding investors, such as the Minerva Foundation, the C. Ehrnrooth family, Rettig and Ilmarinen will also continue as key investors in the vehicle following the capital raise.

Finland-headquartered Medix Biochemica is a leading independent supplier of critical biological raw material products to the in vitro diagnostics (IVD) industry worldwide. The company develops, produces, and supplies high-quality antibodies, antigens, and other critical IVD raw material products to IVD test manufacturers around the world, enabling the delivery of accurate IVD tests to billions of patients worldwide. The company’s expertise covers various market segments including immunoassay, clinical chemistry and molecular diagnostics. Medix Biochemica employs over 250 professionals worldwide and it serves its global customers through local teams in North America, Europe, and China.

DevCo partnered with the previous main owner Minerva Foundation and acquired a majority stake in Medix Biochemica in February 2018 with an aim to accelerate the growth and development of the company. During DevCo’s first six years of ownership, Medix Biochemica has significantly strengthened its strategic position as the first choice raw material partner for the in vitro diagnostics industry through execution of significant organic development initiatives and seven strategic acquisitions in the US and Europe. As a result of the acquisitions and above-market organic growth, the company’s sales have grown from 20 MEUR in 2017 to 70 MEUR in 2023.

“DevCo’s mission is to sustainably develop world-leading companies in fundamentally attractive niche markets. During the first six years of our ownership of Medix Biochemica, the company has transformed into a leading independent provider of critical IVD raw material products with truly global operations, broad high-quality offering and vast global customer base. This capital raise represents a significant milestone in our long-term investment in Medix Biochemica by providing adequate resources for the next phase of the company’s accelerated growth strategy. We are grateful for the continued support of our existing investors in this long-term investment and very pleased to welcome the new investors, led by Council Ring Capital, to the investor base. In addition, we would like to thank the whole personnel of Medix Biochemica for the great work and strong commitment to the company’s ambitious growth strategy”,

says Teemu Alahuhta, Vice Chair of the Board of Directors of Medix Biochemica and partner of DevCo Partners.

“Medix Biochemica’s partnership with DevCo has been instrumental in enabling the transformational growth of the company in the past six years. The DevCo team has done everything they promised and provided both long-term capital and committed hands-on resources for the execution of Medix Biochemica’s accelerated growth strategy. This capital raise not only enables continued growth investments for Medix Biochemica but also underlines DevCo’s unique positioning as a dedicated, responsible and long-term oriented growth partner for high-quality medium-sized companies aiming for global market leadership”,

says Ann-Christine Sundell, Chair of the Board of Directors of Medix Biochemica.

“We are delighted to help support the next phase of growth for Medix Biochemica, which is an exceptional business, alongside world-class partners at DevCo and its investor group,”

says Chuck Murphy, Chief Investment Officer of Council Ring Capital.

“Through its vision and efforts, DevCo has transformed Medix Biochemica into the raw material supplier of choice to the world’s IVD manufacturers. We look forward to contributing complementary healthcare expertise, network connectivity, and capital in support of DevCo and Medix Biochemica,”

added Marc Gruenhut, Principal & Healthcare Sector Lead at Council Ring Capital.

“Medix Biochemica represents exactly the kind of company we like to invest in, being a high-quality player in a resilient and growing market. This transaction underscores Coller Capital’s strength in the Nordic secondaries market and the healthcare sector and we are excited to partner with DevCo in this transaction”,

says Martin Fleischer, principal at Coller Capital.

Contact information
Teemu Alahuhta, Partner of DevCo Partners
Phone: +358 10 235 4820
Email: teemu.alahuhta@devco.fi

DevCo in brief
DevCo is a long-term oriented active owner and development partner dedicated to building world-leading companies in selected niche markets. DevCo provides its companies with hands-on operational resources, strategic support, and significant financial resources to support step changes in their performance. DevCo is currently a significant owner of three global niche leaders, Vexve, Medix Biochemica, and Bluefors.

Council Ring Capital in brief
Council Ring Capital is a Chicago-based, single-family office investing in growing businesses across the healthcare, technology, and consumer sectors. The firm seeks to make long-term equity investments in which the team can leverage its permanent capital base, relationship network, and expertise to drive successful outcomes in alignment with those it invests alongside.

‍