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FSN Capital VI partners with Prange Group

FSN Capital VI (FSNC) has acquired a majority share in Adragos Pharma Group (Adragos), a B2B contract developer and manufacturer (CDMO) for pharmaceuticals. 

The current owner, Prange Group (PG), remains invested. The parties have agreed not to disclose details of the transaction.

Adragos, with production sites in Livron (France), Leipzig (Germany) and Toride (Japan) offers end-to-end services for a broad range of pharmaceutical products, in particular injectables and semi-solid forms. As a local partner for leading pharmaceutical companies, Adragos excels through superior service and reliability of supply, specialising in non-biotech products, so-called small molecules.

FSNC will provide additional momentum, enabling Adragos to expand its existing manufacturing network via add-on acquisitions in Europe and North America. While Adragos is open to take over other CDMOs, a particular focus lies on acquisition of production sites from large pharma players. The management team draws on substantial experience in corporate carve-outs and subsequent commercial and operational improvement of acquired production sites.

Together with FSNC and PG, Adragos aims to invest into growth in the upcoming years, with the goal of securing a leading position in an ever more attractive market.

Otto Prange, founder and owner of PG, says: “FSNC, our group, and the excellent management team of Adragos complement each other perfectly. We all stand for decent, sustainable, and responsible business conduct, and the chemistry between us is right. Joining forces means becoming stronger and being faster. Together we can create a global player that continues to deliver the best value for patients, customers and employees.”

Nicolai Norrbom, Principal at FSNC, sees significant buy-and-build potential for this investment: “Adragos is active in a market with strong underlying growth fundamentals and where the continuing network optimization by large pharmaceutical companies presents many attractive M&A opportunities. With the several decades of CDMO track-record that PG and the Adragos management team bring to the table, Adragos is exceptionally well-positioned to successfully execute on these M&A opportunities.”

Dr Andreas Raabe, CEO of Adragos, says: “The Group has an excellent market position based on well-established production sites that enjoyed double-digit growth rates in recent years, significantly above the general CDMO market. This is a result of a high level of service and care for our customers. Now we can take the next step and realize our vision of becoming a global leader.”

CFO Philipp Ziehr adds: “Our new shareholder complements the pharma industry expertise and track record of our existing owner PG. FSNC brings substantial experience in buy-&-build processes, complex transactions and further financial power to the table. This will accelerate our growth plans substantially.”

Justin Kent, Partner at FSNC, pointed out that “this initial investment in Adragos is only the first step on a longer journey. We look forward to working with the team towards creating a leading player through a string of acquisitions.”

The investment in Adragos represents the fourth investment from FSN Capital VI and the third investment so far in 2021. This is another example of FSNC partnering with strong entrepreneurial teams to create industry-leading companies with significant growth potential.

The transaction is subject to approval from applicable authorities.

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