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 develop within 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
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.
After a global search, Riverside tapped a native Kiwi for a planned CEO succession, relocating him from the US.
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.
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:
- 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
The Riverside Operating Team and Riverside Toolkit advisors led initiatives that added significant value at Simcro.
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.
- July 2013
- Healthcare, Specialty Manufacturing & Distribution
- Asia Pacific
- Business Unit
- Riverside Australia
- Private Equity
Riverside has been important in allowing us to focus on starting a drive toward finding efficiencies and synergiesRoger 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.