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Simcro Limited – Growth Story

Not sheepish about growth

Simcro makes an array of delivery devices used by pharmaceutical companies to deliver animal health products quickly and safely to farm animals.

During a five-year hold, Riverside helped Simcro become the world leader in its niche. Key accomplishments during the hold included the sourcing and integration of two add-on acquisitions that added customers and capabilities, improvements to the management team, and significantly globalizing the salesforce.

Riverside's Growth Strategy

Utterly Compelling
Roping In Talent
A Whole New Animal
Steering the Right Way
Realization

Benefits of Riverside

Simcro makes applicators and drenches that allow for fast, easy and accurate delivery of veterinary medications. Based in Hamilton, New Zealand, the company benefited from Riverside’s international scope and experience growing both pharmaceutical and specialty manufacturing companies.

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Global Reach

After a global search, Riverside tapped a native Kiwi for a planned CEO succession, relocating him from the US.

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Around the World

Several experts from around the world bolstered the management team. An Uruguay-based global leader joined the board, and a Hong Kong-based operating partner established a facility for product sourcing and quality assurance in Shanghai.

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Expanding Offices

Riverside helped Simcro establish offices for business development and fulfillment in the U.S., Latin America, Asia and Europe.

Two Add-ons Transformed Simcro


Riverside led the acquisition of two highly strategic add-ons that didn’t just change Simcro – they changed the nature of the industry. The combination of Simcro with Instrument Supplies Ltd Animal Health (ISL) and NJ Phillips Pty Ltd (NJP) created an end-to-end designer, manufacturer and distributor of animal health-delivery systems. The new company had:

  • Significantly improved operating efficiencies, leading to cost-savings totalling NZD3 million
  • Bigger scale that helped Simcro accelerate its investment in building out a global footprint and attracting top talent
  • Greatly enhanced margins
  • An improved the supply chain
  • Increased sales and distribution
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Value Addition

The Riverside Operating Team and Riverside Toolkit advisors led initiatives that added significant value at Simcro.

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Lean Meat

Integration activities, product rationalization and new product strategies helped Simcro thrive.

 

Sold to strategic buyer Datamars SA.

  • Relocated operations to a single facility in Hamilton
  • Overhauled the supply chain and grew gross margin from low- to mid-40s to approximately 50%
  • Implemented new systems for accounting, supply chain and business intelligence
  • Restructured the Australian operations to outsource manufacturing and focus only on assembly
  • Invested to create new products for adjacent animal health verticals – the core of the business was on devices for production animals, but Simcro had a strong pipeline in companion animal health devices at exit.
Dataimg 2013Investmentyear
Dataimg 2018Realization
Dataimg Industry HCSMD
Invested
July 2013
Status
Exited
Industry
Healthcare, Specialty Manufacturing & Distribution
Region
Asia Pacific
Business Unit
Riverside Australia
Strategy
Private Equity
Riverside has been important in allowing us to focus on starting a drive toward finding efficiencies and synergies Roger Wakelin | CEO


Growth Stories are not intended to be illustrative for investment purposes and should not be relied upon for investment decision making. This should not be considered an offer or solicitation of securities or investment services. Information is for informational purposes only and intended for General Partners or Management teams considering partnering with The Riverside Company.

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