Creating a global leader in targeted segments of the in vitro diagnostics industry, with particular focus on molecular diagnostics
Overview
In July 2017, PAI Partners completed the acquisition of ELITech, a global manufacturer of in-vitro diagnostics. The company’s products help hospitals and laboratories perform analyses to diagnose diseases, identify disease risk factors and optimise treatment choices.
PAI’s decision to acquire ELITech was based on its resilient business model, strong market position in specialist niches of molecular diagnostics and microbiology, clear growth potential via the development of new generation systems and strong management team led by CEO Christoph Gauer.
Under PAI’s ownership, ELITech underwent multiple transformative initiatives, including the launch of next-generation molecular diagnostics systems as well as significant R&D investments to support the product portfolio offering. These efforts helped strengthen ELITech’s competitive position and enhance its reputation as an industry innovator, resulting in substantial financial growth and profitability.
The company’s transformation into an agile, research-driven company led to its successful sale to Bruker Corporation, a prominent international life science research and diagnostics solutions provider, which completed in April 2024. It is another example of PAI’s ability to grow businesses beyond Europe and secure an exit to a strategic buyer, in this case a $10bn US-listed global business.
Leveraging PAI’s Healthcare expertise
PAI's experience and track record in Healthcare, particularly its knowledge of the diagnostics space and regulatory environment following an earlier investment in Cerba HealthCare, positioned the firm as a strong partner to support the management team in delivering the transformation plans. This expertise, coupled with PAI’s strong relationship with the team, enabled the firm to pre-empt the auction process.
The investment team had identified several tailwinds, in line with PAI’s thematic approach to investing, providing the strong conviction that ELITech had the potential to deliver solid growth. This encompassed several structural megatrends, including the increasing use of diagnostics to improve quality of care, as well as the need to bring diagnostics closer to patients through lower throughput equipment.
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60%+
Increase in profits
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10+
Countries with direct distribution platforms
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1,100+
Number of InGenius machines placed since PAI acquisition
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22m+
Covid-19 tests sold since the pandemic
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ELITech’s transformation journey
Under PAI ownership, a number of transformational initiatives were deployed to enhance the company's competitive position. This included the development of next-generation platforms, such as the roll-out of ELITech’s InGenius and BeGenius systems. In addition, the company made selected strategic acquisitions, such as Gonotec, a German osmometer business which was a strong strategic fit for the company’s existing offering in microbiology.
Today, ELITech has seven development and manufacturing sites across Europe and the US, a direct distribution platform in more than 10 countries and an established network of distributors and OEM partners across the globe.
When the company was sold in April 2024, ELITech profits had increased by more than 60% since acquisition, with the sale representing a compelling 3.7x MoC, highlighting the substantial value created during PAI ownership.
