Project description
Equity co-investment of up to €25 million with MidEurope for the acquisition of Famar (the “Company” or the “Target”), a European contract development and manufacturing organization (“CDMO”).
Project purpose
The Bank’s equity investment, together with Mid Europe, will enable Famar to transform into higher value-added products with an enhanced set of R&D capabilities, and will enable the company to pursue further acquisitions in the Central and South East Europe region. It could also be a platform.
Impact of migration
ETI score: 72
The project is a parallel equity co-investment in which the EBRD is an existing investor with a private equity fund, targeting the attributes of a resilient and competitive transition effect. Following the acquisition, Famar will expand its R&D capabilities through investments in new drug formulations, additional sterile injectable capacity including a new site and R&D center in Greece, and implementation of operational efficiency measures across existing manufacturing sites. It is expected that the company will transform into a specialized CDMO.
Customer information
Epione Co-Investment LP
Famar is a mid-sized Greek pharmaceutical CDMO, headquartered in Greece and with production sites in Greece, Spain and Italy, specializing in the manufacturing and distribution of a wide range of pharmaceuticals, consumer health products and cosmetics. Famar was founded in 1949 as a Greek family business and has been private equity owned since late 2018. We have 1,700 employees and a diverse and valued customer base. There are 100 customers.
EBRD financial overview
24,250,000 euros
additionality
In addition to serving as a platform for regional expansion, Famar is well positioned to leverage existing internal capabilities to move into higher value products and expand its R&D capabilities. In this regard, the EBRD’s experience and presence in the region will provide further reassurance to such strategic initiatives.
Environment and Society Overview
Classified FI (ESP 2019). Obtaining shares indirectly through an intermediary fund in a contract drug development and manufacturing organization based in the EU involves identifiable risks that can be easily addressed by the fund post-acquisition. Environmental and social due diligence (ESDD) has been conducted, including a review of the (Phase 1) independent due diligence report conducted on the target by the co-investors, the target’s annual public sustainability report and material Consists of a gender assessment report. Completed by target. Target’s E&S risk profile is relatively low for this type of business, and the integration of Target’s assets following the acquisition will include a capital and operating expenditure program for E&S investments. The co-investors have confirmed with the bank that no operational efficiencies, such as job cuts, are expected as the target’s growth potential following the acquisition is believed to be the main objective. Additionally, the objective importance assessment identified employee retention as a top priority.
Other ESG-related issues identified by our respondents included the typical set of environmental issues related to greenhouse gas emissions, as well as occupational health and safety, product quality and safety, corporate governance, ethics and compliance, These include risk management, support for access to health care, and transparency. Therefore, the target audience is fully aware of key operational E&S/ESG-related issues. An independent ESDD commissioned by co-investors has confirmed that such issues are properly managed, and the report states that the company’s client base has The company says it has established its sustainability ambitions by developing and implementing an ESG strategy that supports it in achieving its goals. is increasingly recognized as important to clients and will soon become a differentiating criterion for supplier selection. The company will launch a sustainability program in 2022, primarily by setting carbon emissions reduction targets (30% from 2020 to 2030) and efforts to save energy through renewable energy sources, energy efficiency and consumption improvements. focused on. The sustainability program was developed based on an ESG materiality assessment that covers a wide range of ESG aspects.
The Target Company will publish an annual sustainability report and report to shareholders on a regular basis.
Technical cooperation and grant aid
Not applicable
Company contact information
Mid-Europe Investor Information
IR@mideuropa.com
+44 (0) 207 886 3600
https://www.famar-group.com/
Last updated date of PSD
October 21, 2024
Understand the transition
Further information on the EBRD’s approach to measuring the impact of migration is available here.
business opportunity
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Environmental and Social Policy (ESP)
The ESP and related Performance Requirements (PR) set out how the EBRD carries out its commitment to promoting “environmentally responsible and sustainable development”. ESP and PR ensure that their clients comply with applicable national law requirements regarding public information and consultation and have a grievance mechanism in place to receive and facilitate the resolution of stakeholder concerns and complaints, particularly regarding environmental issues. Contains special provisions for establishing. Client and project social performance. Proportionate to the nature and scale of the project’s environmental and social risks and impacts, the EBRD further requires clients to disclose information on the risks and impacts arising from the project as appropriate or to communicate meaningfully with stakeholders. We request that we hold consultations and consider and respond to the exchange of opinions with stakeholders. feedback.
Further details regarding the EBRD’s practices in this regard can be found in the ESP.
integrity and compliance
The EBRD’s Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied in all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all of the bank’s customers to ensure that projects do not pose unacceptable integrity or reputational risks to the bank. We believe that identifying and resolving issues during the approval stage of project evaluation is the most effective means of ensuring the integrity of our transactions. OCCO plays a key role in these protection efforts and also helps monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and wrongdoing in EBRD-funded projects. Anyone suspected of fraud or corruption, whether internal or external to the Bank, must submit a written report to the Chief Compliance Officer via email at compliance@ebrd.com. All reported matters will be processed by OCCO for follow-up. All reports, including anonymous ones, will be considered. Reports can be produced in the language of the Bank or the country in which the Bank operates. The information provided must be prepared in good faith.
Access to Information Policy (AIP)
After entering into force on January 1, 2020, the AIP sets out how the EBRD will disclose information and consult with stakeholders to promote awareness and understanding of the EBRD’s strategy, policies and operations. Masu. Please see our access to information policy page for more information. What information can I get from the EBRD website?
Specific requests for information can be made using the EBRD contact form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social, or public concerns with a customer or bank are unsuccessful (e.g., through the customer’s project-level grievance mechanism or through direct engagement with bank management), individuals and organizations may , may seek to address concerns through the EBRD. Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews project issues that it believes have caused (or may cause) harm. The purpose of this mechanism is to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues. To determine whether the bank is complying with project-specific provisions of its Environmental and Social Policy or Information Access Policy. Where applicable, to address existing non-compliance with these policies while preventing future non-compliance by the bank.
For more information about IPAM and its mandate, please visit the Independent Project Accountability Mechanism webpage. How to submit a review request. Alternatively, for guidance and further information about IPAM and how to submit a request, please contact IPAM by email at ipam@ebrd.com.
