Elyan Partners and Edmond de Rothschild Private Equity announce a £40 million investment in Alliance Pharma via ERES IV and EDRPEO FCPR funds
Elyan Partners, the exclusive advisor for ERES IV and EDRPEO FCPR funds and specialising in thematic mid-cap private equity in Europe and North America, along with the funds’ management company, announces the funds’ investment in Alliance Pharma. This marks the eighth commitment by ERES IV (a fund raised in 2021, with €512M in assets under management) and the sixth commitment by EDRPEO FCPR (evergreen retail private equity investment fund created in 2023).
Alliance Pharma, based in the UK, markets approximately 80 pharmaceutical brands across Europe, Asia, and the United States. The company primarily focuses on non-prescription products, which represent 75% of its offering, addressing health and wellness issues with well-known brands such as Kelo-Cote, Nizoral, Amberen, Macushield, and Hydromol. In 2024, the company generated a turnover of £180 million with 290 employees.
Why Alliance Pharma?
A promising market: Alliance Pharma operates in the consumer healthcare sector, offering products that address non-cyclical needs related to quality of life, backed by positive and long-term demographic trends.
A portfolio of leading brands: its brands are market leaders, recognized for their effectiveness. Their niche specialization allows them to avoid direct competition with large consumer groups.
A profitable business model: by operating under a "fab-less" model, Alliance Pharma benefits from solid margins while requiring little capital investment.
Dynamic new leadership: with a new management team coming from the consumer sector, better suited to the company's strategy, Alliance Pharma is ideally positioned to accelerate its growth and enhance its profitability.
In the coming months, efforts will focus on optimizing the current platform, accelerating growth and improving margins, while transitioning towards a more consumer-oriented mindset (with a better marketing and go-to-market approach). An opportunity to divest the prescription medical business is being considered, with a view to reinvesting in other brands in order to harmonize the portfolio.
Laure Lamm-Coutard and Vincent Manès, Partners at Elyan: "As a long-term investor, the ERES IV Fund is happy to support Alliance's management team in the implementation of its growth plan for the company, which will take a number of years to execute. As experienced investors active in the US and Europe for more than 20 years, the ERES funds will help deliver value for all Alliance stakeholders, through support for increased innovation, M&A, and internationalisation."