The Riverside Company’s A.forall Platform to Divest Its Retail and Hospital Division to Abacus Medicine

The Riverside Company (Riverside), a global investment firm focused on the smaller end of the middle market, is pleased to announce that A.forall, one of the portfolio companies of its affiliated European fund, has signed a definitive agreement to sell its Retail & Hospital (R&H) business unit to Abacus Medicine, a pharmaceutical company specialising in parallel import and distribution across Europe. The transaction is expected to close in the second half of the year.

Riverside originally invested in A.forall (formerly known as Alter Pharma), a global specialty pharma group, in December 2017. Headquartered in Belgium, the company’s services and product offering were expanded with the add-on acquisition of Eco Pharma Supply (EPS) in April 2022, further leveraging its regulatory compliance and market know-how, as well as its extensive sales and logistics network.

The R&H business unit of A.forall consists of its parallel import and distribution activities (Retail) and its hospital shortage management business (Hospital). The business sources and distributes both branded and generic pharmaceutical products, including medical devices and consumer health products, to pharmacies, hospitals and wholesalers throughout the Benelux region. AI-supported systems help it efficiently identify shortages, enabling it to get products into the market where they are needed with maximum efficiency and speed.

Under Riverside’s stewardship, A.forall’s R&H division has grown from being a domestic business selling a limited range of pharmaceutical products to Belgian pharmacies to a multi-country player with an extended portfolio of products and services. With the integration of EPS, a company focused on addressing critical drug shortages, A.forall extended its reach to hospital clients, significantly broadened its product and service range and rebranded in 2023 to better reflect its commitment to Making Affordable Medicines Available To All.

In parallel with the transaction, A.forall has also announced a leadership transition. Filip Van de Vliet, who has served as CEO since 2019 and led the company through a period of significant growth and transformation, will be stepping into the role of Chairman of the Board of Directors. He will be succeeded by Steen Vangsgaard, currently Head of the Generics Business Unit. Vangsgaard, a Danish national, brings over 20 years of experience in the generics industry and will focus on further expanding A.forall’s global presence. His appointment marks an exciting new chapter for the company as it sharpens its strategic focus on the generics market and continues to expand its product portfolio, organically through its successful development engine and inorganically through targeted acquisitions.

Karsten Langer, Managing Partner of Riverside Europe, said: “A.forall is a perfect example of Riverside’s commitment to investing in strong, local midsized businesses that have high growth potential but require support, specialised expertise and a global network to grow internationally. This transaction marks Riverside’s 11th exit in the European healthcare industry as well as its 48th healthcare exit globally, making it one of our core investment sectors. It demonstrates our ability to lead businesses through challenging macroeconomic times to deliver consistent value for portfolio companies and for our investors.”

Damien Gaudin, Partner at Riverside Europe, who led the transaction, added: “A.forall has undergone a strategic transformation over the past few years. The sale of the R&H business unit to Abacus Medicine is a logical milestone in its continued development. We are particularly proud of the development of proprietary AI-enabled algorithms that support rapid and data-driven product selection, as well as the successful scaling of its drug shortage services, ensuring patients receive timely access to critical treatments. We also want to thank Filip Van de Vliet for his outstanding leadership and are pleased to welcome Steen Vangsgaard as the new CEO to lead A.forall into its next phase.”

Riverside retains ownership of and will continue to invest in A.forall’s Generics business unit, which specialises in the development and commercialisation of value-added generic pharmaceuticals worldwide. The business, which will continue to operate under the A.forall brand name, currently markets more than 30 in-house developed added value products that are being sold in more than 60 countries around the globe including the U.S.

Filip Van de Vliet, outgoing CEO and incoming Chairman of the Board of A.forall, commented: “Over the past several years, we’ve worked hard to build a business that delivers high-quality, safe and affordable healthcare products with speed, intelligence and care. On average, we have been delivering to Belgian pharmacies more than 500,000 months of missing treatments every year and brought relief to more than 1,000,000 Belgian patients that would otherwise lack their medication at home or in the hospital. We are confident that Abacus Medicine is the right home for our Retail & Hospital division, as their expertise and pan-European footprint align well with our core values and growth trajectory. I want to thank the entire team for their dedication and look forward to seeing this next chapter unfold successfully.”

Frederik Heupel, Chief Commercial Officer of Abacus Medicine, said: “The R&H business unit of A.forall and Abacus Medicine are a perfect match, and we see a great opportunity in combining two businesses that complement each other well. The R&H division of A.forall has strong, direct relationships with pharmacies, whereas Abacus Medicine primarily serves the pharmacies in Belgium via wholesalers. In addition, Abacus Medicine has a strong focus on high-priced medicine, whereas the R&H division has a broad range of lower-priced medicine. By joining forces, we can offer our customers great service and access to a broad and attractive product portfolio.”

Working with Gaudin on the transaction for Riverside were Riverside Europe Vice President Maxime Meulemeester and Senior Associate Sebastiaan Pauwels.