Invested 100 billion KRW to secure 88% stake, completed long-term contract reorganization with

Germany's Schott AG

Domestic private equity fund (PEF) managers bnw Investment and Elio PE have finalized the acquisition of management rights of Poonglim Pharmatech, the leading domestic manufacturer of prefilled syringes (PFS). Along with the final payment, the company also restructured its long-term contract with Germany's key supplier, SCHOTT, which is seen as strengthening its PFS-centered growth strategy.

According to the investment banking (IB) industry on the 30th, BNW Investment and Elio PE recently closed a deal to acquire about 88% of Poonglim Pharmatech's shares. The acquisition price is about 100 billion KRW, and the structure involves purchasing both new and existing shares of Poonglim Pharmatech. It is reported that the two asset managers executed the acquisition price using a project fund formed in a co-management (Co-GP) form with their blind fund holdings.

With this transaction, most of the founding family's shares will be transferred to financial investors (FIs), but the second-generation owner, President Jo Mi-hee, will remain as a subordinated investor and participate in management. President Cho will hold about 12% of the shares and will continue to serve as sales representative, leveraging his accumulated domestic and international pharmaceutical and medical device industry networks to manage existing clients and secure new clients.

The acquirer reportedly restructured the domestic exclusive distribution rights for short PFS products into a long-term contract with virtually no time limit, by stipulating the supply conditions and licenses for short and PFS vials (glass containers for injection) and cylinders. At the same time, the contract specifically reflects the scope of production and sales of Poonglim Pharmatech's own PFS products, reducing legal and business uncertainties during future manufacturing expansion.

Poonglim Pharmatech is a medical device manufacturer established in 1999, producing and supplying syringes, needles, vials, and more. From its early days, it expanded the market by introducing and distributing SCHOT's PFS syringes domestically, and during the COVID-19 pandemic, it localized LDV syringes and increased its recognition by supplying large quantities of specialized vaccine syringes.

Recently, the company has expanded its portfolio to include high-precision products designed as integrated PFS syringes and needles, as well as sterile needles. Last year, it recorded sales of 93.2 billion KRW and operating profit of 5.4 billion KRW, making it a mid-sized medical device company with stable cash generation.

Reporter Min Kyung-jin min@hankyung.com