In-vitro diagnostics – Allergy testing
Transaction value
€1,285 million
Jan 2007
Aug 2011
Cinven value creation
  • Created major US market
  • Developing the emerging market
    e.g. acquiring Chinese distributor
  • Introduction of additional
    autoimmunity test
  • Efficiency gains - Cinven's HK office
    helped source consumables
  • Changes in Management
  • Opportunistic acquisition of €46m of Phadia PIK notes at c.60 cents


Phadia Chart 2012

Phadia is the global leader in in-vitro allergy diagnostics and the European leader in autoimmunity diagnostics. It has a global footprint, distributing directly in 21 territories and enjoying further reach through a broad international network of distributors. The company is headquartered in Uppsala, Sweden, and employs approximately 1,500 people worldwide. The company has been a pioneer in bringing new allergy diagnostic tests to the market since it was established in 1967 and its products, including the ImmunoCAP range, have a high reputation. Phadia’s success has been founded on strong R&D, which competitors have been unable to match. Phadia provides its highly advanced diagnostic systems to hospital and commercial laboratories. Its installed machine base generates a continuing revenue stream through the supply of allergens, autoimmunity tests and related consumables. Over 5,000 of the company’s machines are installed in more than 3,000 laboratories worldwide.

Cinven's strategy was to assist Phadia in growing its core business to reach its full potential, both strategically and operationally, by continuing its geographic and product expansion to open up new markets for growth. This included accelerating revenue growth via expansion and professionalisation of the sales force, particularly in the US market, supporting internationalisation into emerging markets such as India, China and Brazil, investing in new products that leverage Phadia's technical expertise and further roll-out of autoimmune disease diagnostics into under-represented markets (e.g., the US and Japan). Also, under Cinven’s ownership, “best in class” practices were implemented across regions to drive both efficiency and organisational effectiveness. 

Following the acquisition of Phadia, a number of measures to drive the growth of the business were implemented. These included the expansion and optimisation of the US sales force to accelerate growth in this large and under-penetrated in-vitro allergy testing market. Specifically, the business enhanced monitoring and targeting processes while also making significant investments in expanding the sales force in regions where the potential for increasing testing is highest. In the autoimmunity space, the roll-out of Phadia’s full product range into the USA began, leveraging on the ongoing success of this product range in Europe.

Cinven also supported the business in accelerating its expansion in high potential emerging markets, particularly in China and India. Cinven’s portfolio team in Asia worked in partnership with Phadia management to grow the business in these markets for example through the acquisition of Phadia’s Chinese distributor and the setting up of a new office in India.

In May 2011, Cinven reached an agreement to sell Phadia to Thermo Fisher Scientific Inc. for an enterprise value of €2.47 billion. The sale of Phadia returned a 3.4x multiple to its fund, representing a capital gain of around €1 billion. This marked the successful execution of the investment thesis pursued by Cinven and management, which resulted in the globalisation of the business, doubling of the company's revenue growth rate and a substantial increase in employment in the group, despite the recessionary economic environment. The transaction completed in August 2011.