WindStar Medical was a leading German provider of non-prescription healthcare products (OTC). The company developed private label products in close cooperation with customers in the drugstore, discount and food retail segments, and offered its own brands such as SOS, Well&Slim and Green Doc. More than 300 products were listed on the shelves of German drugstores, supermarkets and discount chains.
The acquisition
Equita Holding (Fund III) / Equita CoVest (Fund IV) acquired WindStar Medical in late 2014 together with management. Initial contact with the founders had been established as early as 2012; following the implementation of preparatory structural improvements, the change of ownership was concluded in an exclusive process. The transaction was secured on the back of the long-standing relationship with the founders and the ability to close the transaction initially on an all-equity basis.
Investment Rationale
WindStar Medical addressed a structurally growing market segment with high barriers to entry, supported by rising health awareness and a stronger self-medication trend. The innovative business model combined product development, regulatory expertise and marketing in both branded and private label products with a high cash conversion. In addition, potential was identified to increase the branded share of revenues and thereby enhance the company’s strategic value.
Implementation of the growth concept
Growth was driven by new product launches in both categories, a deliberate expansion of branded products and a more intensive cultivation of the non-pharmacy channel. The branded share of revenues was increased and the company’s strategic positioning vis-à-vis private label competition was strengthened. A geographical expansion across Europe was prepared in parallel and online marketing reinforced. Add-on acquisitions in the fragmented German OTC market were envisaged as a further lever.
Exit
The exit was completed in October 2016 to 7Life GmbH, a subsidiary of ProSiebenSat.1 Media SE focused on Consumer Health & Beauty.
