Investment Overview
Investment Overview
Project & Company
Background
After several years of rapid growth since its founding, the owner of Axygen Scientific was looking for a growth-oriented partner to help him and his team grow the business while providing liquidity for personal asset diversification. ShoreView structured a transaction that provided the owner with his desired level of liquidity while allowing him to retain a significant ownership stake in the business going forward. ShoreView and management worked closely together to complete several strategic add-on acquisitions, move the company into a new state-of-the-art manufacturing facility, and expand Axygen’s international presence. Sales and earnings of the business more than quadrupled, resulting in a successful outcome for all equity holders, including a return for the founder that was larger than the original transaction with ShoreView.
Investment Summary
Investment Summary
Investment Summary
Axygen is a leading manufacturer of proprietary, high-end plastic laboratory consumable products sold into the life sciences industry. The products are used by a wide range of end-users including pharmaceutical development labs, crime labs and academic labs. Throughout the investment period, ShoreView collaborated with management to successfully execute a multi-faceted growth plan.
Add-on Acquisitions
Add-on Acquisitions
Over a three-year period, Axygen completed five strategic add-on acquisitions. These acquisitions brought with them new proprietary laboratory products, critical manufacturing and sourcing capabilities, and access to new and growing international markets and customers.
International Growth
International Growth
Axygen expanded its international presence with two add-on acquisitions in Asia and one add-on acquisition in Poland. By expanding the global distribution network, the company was able to realize above market growth as new product introductions could be quickly rolled out to the global market.
Plant Expansion
Plant Expansion
Axygen’s rapid growth since its founding was putting stress on its 33,000 square foot manufacturing facility. ShoreView’s investment in Axygen allowed the company to invest in a state of the art facility that provided enhanced manufacturing efficiencies, and, at 100,000 square feet, adequate capacity to support the company’s future growth
Outcome
Outcome
The Results
During ShoreView’s investment in Axygen, the sales and earnings of the business more than quadrupled. As a result, the founder of the business realized a return of more than ten times on his rollover equity investment, and the business continued to grow substantially after ShoreView’s investment period.
The portfolio companies profiled in these case studies do not constitute all of the investments made or recommended by ShoreView. The portfolio companies selected for these case studies have been chosen solely based on objective non-performance-based criteria and are intended solely to illustrate the breadth and depth of ShoreView’s investment strategies and experience. It should not be assumed that any future investments will be profitable or will equal the performance of the investments identified above. Past performance is not indicative of future results.