Gemini

Transaction Background

– Gemini operates the largest e-pharmacy in Central Europe as well as a chain of stationary pharmacies in Poland with total revenue exceeding PLN 400 M. The company has developed a unique business model that allows it to generate through its pharmacy network, both revenue and profits several times higher than the market average.
– The founders of Gemini chain considered securing a potential investor for Gemini to strengthen the company’s expansion capabilities and enable further dynamic development while ensuring the continuity of its unique business model.
Our Role

– We conducted a detailed strategic analysis of the company and its strengths in the context of its unique on a worldwide scale business model, often inconsistent with the generally accepted business concept of a typical pharmacy, both in Poland and in Europe.
– In the early stages, we selected a long list of the most appropriate financial investors operating on global markets. In view of Gemini’s unique business model and strong, independent management, we deliberately chose not to present the acquisition opportunity to strategic investors, who based on our experience, would not be able to fully absorb distinct business model.
–  We supported Company’s management during preparation of management presentations for potential investors, where our primary goal included a detailed explanation of Gemini’s unique business model, while proving its durability, repeatability and scalability and thus reasons for its several times greater economic efficiency in comparison with other pharmacies operating in Poland as well as in Europe.
– Together with Company owners, we selected a short list of the most suitable financial investors operating on global markets, who saw the potential of Gemini pharmacy network and its scalable business model. These investors, were primarily interested in an investment in the business concept and its scalability, not only in the existing pharmacy network itself.
– We created a fully competitive process, in which several potential financial investors from around the world  took part. This led to securing the best investor for the company while ensuring the best financial conditions for the pharmacy owners.
– We successfully conducted a complex transaction process with the selected investor, a global private equity fund – Warburg Pincus, which have invested more than $50 billion in over 720 companies in more than 35 countries around the world.
Results

– Sale of 100% of Gemini pharmacy chain to Warburg Pincus and obtaining the best financial conditions for the pharmacy owners.
– Under the new partnership, Gemini will continue with its existing strategy managed by its current  young and dynamic team. With the support of Warburg Pincus, the business is well placed for further growth and development.