Casa Marzam S.A de C.V

Investment Thesis
  • Partnering with highly experienced and successful management team
  • Strong growth market driven by new product introductions
  • Attractive purchase price
JPMPLA Value-Add
  • Negotiated low entry valuation, well below market comparables
  • Teamed up with a group of seasoned Marzam managers that rolled over their 10% participation in the company and received a compensation package with significant upside linked to investment performance
  • Investments in infrastructure to improve productivity at distribution centers
  • Completed Marzam's nationwide distribution platform by opening new distribution centers and by acquiring a highly complementary regional distributor (Medipac)
  • Improved operating margins by implementing a cost-cutting program
  • Improved the purchasing activity by applying capital to an advance purchase program to benefit from an increasing trend in the price of the basic pharmaceutical products basket
  • Significant growth in operations with an estimated 43% increase in revenues and a 42% increase in EBITDA during the investment period
Exit
  • In March 2005, Marzam was sold to a group of Mexican financial investors