Alcami
The partnership between Ampersand and Alcami was the culmination of an initial investment in TriPharm, a sterile fill/finish company co-founded by CEO Pat Walsh and CFO Eric Evans. In 2019, Walsh and Evans discovered an opportunity to acquire a 30,000-square-foot sterile fill/finish facility in Raleigh, North Carolina.
Having previously collaborated with Ampersand through an investment in portfolio company Avista Pharma (Walsh served as CEO and Evans as CFO), they valued the firm’s partnership approach, strategic market insights and industry knowledge. Walsh and Evans immediately contacted Ampersand, knowing the firm possessed a unique ability to facilitate transparent decision making processes when analyzing investment opportunities.
The Raleigh facility that would become TriPharm had been built-out by a pharmaceutical company looking to relinquish their lease as part of a strategic business change. At that time, the demand for sterile fill/finish manufacturing far exceeded supply, creating a significant market opportunity. Walsh, Evans and the Ampersand team recognized the growth potential and agreed to partner together on this new investment.
With a relatively modest investment, they assumed the facility’s lease and founded TriPharm, appointing Walsh as CEO and Evans as CFO. Ampersand collaborated with Walsh and Evans to build-out the leadership team and invest the necessary capital expenditure for TriPharm to begin fulfilling customer orders. Thanks to Walsh’s extensive industry connections coupled with the high demand for fill/finish services, TriPharm grew substantially and within a year began receiving M&A inquiries, one of which came from Alcami.
“One of the things I really liked about the Ampersand team when I started working with them was that they really took the opportunity to specialize in the healthcare and life sciences sectors. There was a very relevant and direct experience base in the various portfolio companies they were investing in. Another thing that I still really value about the team is their truly collaborative spirit.” –Pat Walsh
Keys to Success
In January 2020, less than a year after the creation of TriPharm and Ampersand’s initial investment, Alcami acquired TriPharm, bolstering Alcami’s existing sterile fill-finish business. Ampersand rolled a portion of its TriPharm ownership interest into an ownership interest in Alcami as part of the transaction. Following the acquisition of TriPharm, Pat Walsh became CEO of Alcami, with Eric Evans once again serving as CFO.
Together, Ampersand, Walsh and the majority shareholders, which included Madison Dearborn Partners, were able to strengthen the Alcami business through a number of strategic decisions, including the divestiture of Alcami’s API manufacturing facility in Wisconsin to Sterling Pharma Solutions, a European based CDMO providing API and ADC services. Proceeds from the divestiture were then used to support a massive multi-year Capex investment to strategically build-out further sterile fill/finish capacity, including additional investments in the previous TriPharm site as well as other Alcami facilities. In January 2022, Alcami acquired Masy Bioservices, a New England-based leading provider of biorepository services to top pharma and biotech, with a 150,000-square-foot capacity.
Masy Bioservices was a founder owned business offering a range of GMP storage and ancillary services – an excellent strategic fit with Alcami’s fill/finish manufacturing services. This acquisition allowed Alcami to not only carry out sterile fill / finish manufacturing, but also store clients’ samples and ship them back and forth to customer facilities. Masy Bioservices had been growing steadily under its founder’s ownership. However, the strategic fit with Alcami allowed management to significantly accelerate revenue growth and enhance the business’s profitability as part of the broader platform and service offering.
“When you have an Ampersand sitting alongside you, they’re able to say, ‘What resources can we bring that can help you in recruiting? What resources can we bring to help you with introductions with customers? There may be markets and opportunities that you just haven’t had the prior experience with, and we can pull on and draw on those kinds of resources within your organization.’” –Pat Walsh
Over the course of two years, Walsh, backed by Ampersand and the majority shareholders, successfully reinvigorated Alcami, expanding capacity and investing in new services, capabilities and geographies. In December 2022, GHO Capital and The Vistria Group acquired Alcami from Madison Dearborn Partners and Ampersand. As part of the transaction, Ampersand and Alcami management reinvested significant equity as part of the acquisition with Pat Walsh serving as Chairman of Alcami’s Board of Directors, and as an Operating Partner at Ampersand.
“One of the things that I believe Ampersand does well is that when they first meet with a founder, they listen. They want to know what it is that particular founder wants to see out of the business. The real differentiator for me is speaking as an entrepreneur, would I work with Ampersand again? And if you look at their portfolio, there are a number of entrepreneurs like me, who have worked with them over and over again in multiple opportunities. And it’s because you feel like that culture is there. I think the ultimate compliment to any leader is that if they go onto a new opportunity, will the people that worked with them come and follow them again? And that’s something that – throughout the Ampersand portfolio – I think you can say the answer is yes.” –Pat Walsh
Disclosure: The case study and results included are for illustration purposes only and may not be typical. The case study should not be considered specific investment advice, do not take into consideration a specific situation, and are not intended to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Case study testimonials were provided by clients between May 2024 – July 2024. The client was not compensated, nor are their material conflicts of interest that would affect the given testimony. The testimony may not be representative of the experience of other current clients and does not provide a guarantee of future performance success or similar services.
The statements provided herein are made by certain founders or executives of Ampersand’s past and/or current portfolio companies. Certain statements made herein are considered “testimonials” and express approval, support, or a recommendation of Ampersand, or describe the individual’s experience with Ampersand. The individual has not been directly compensated for making these statements. However, a portfolio company in which the individual held a significant equity interest may have received financial investment from Ampersand through one or more funds managed by Ampersand. As such, the individual may have an indirect financial interest in the success of Ampersand’s activities or in presenting Ampersand in a favorable light. Additionally, the individual may be an Operating Partner or Executive Advisor with Ampersand. As an Operating Partner or Executive Advisor, the individual performs certain services for Ampersand and may be compensated for providing these services. These potential conflicts of interest should be considered by prospective investors when evaluating the individual’s testimonial.
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