Riverside Builds BioDue with Biokosmes and Rolf Kullgren

The Riverside Company (Riverside), a global investment firm focused on the smaller end of the middle market, has announced that BioDue S.p.A (BioDue), a portfolio company of its affiliated European fund, has signed a definitive agreement to invest in Biokosmes and Rolf Kullgren, a business unit of Venture Life Group plc (VLG), a UK-quoted consumer healthcare business. The investment marks the second add-on since Riverside’s investment in 2023, for BioDue, an Italian food supplements, medical devices and cosmetics business. Closing is subject to customary conditions including approvals by the competent regulatory authorities.

Founded in 2010, VLG and its subsidiaries manufacture and supply consumer healthcare products including medical devices, cosmetics and food supplements. BioDue is acquiring VLG’s contract development and manufacturing organization (CDMO) business unit, including some of VLG’s medical device technical files portfolio. At closing, VLG will enter into a long-term manufacturing agreement with BioDue, under which it will manufacture a number of its products on an exclusive basis.

Karsten Langer, Riverside Europe Managing Partner, commented: “We are delighted that BioDue has signed this agreement, which is another example of our strong sector focus, sitting at the cross-section of our Healthcare and Consumer Products & Services specializations. The two businesses have a close cultural fit and are highly complementary, with BioDue focused on food supplements and Biokosmes and Kullgren’s production unit specializing in medical devices and cosmetics. The acquisition will complement and add scale to BioDue’s CDMO business unit, bringing significant potential for synergies.”

Rafael Alvarez-Novoa, Partner, who co-led the deal with fellow Partner Damien Gaudin, said: “The acquisition brings significant potential upsides for BioDue, providing it with greater portfolio breadth and enhancing its position as a one-stop-shop. Currently, approximately 70 percent of the business unit’s sales come from medical devices, whereas BioDue has traditionally focused more on food supplements. The investment will add new manufacturing sites in Northern Italy and Sweden, bringing the total to seven plants, each of which is a centre of excellence.”

Riverside acquired BioDue, one of the leading dietary supplements and medical devices companies in Italy, in March 2023. The company was founded in 1986 by the Benedetti family and provides customers with a full-service offering, including raw material sourcing, development and formulation, production, packaging and regulatory affairs and commercialization. Its product portfolio comprises food supplements, medical devices and cosmetics. BioDue boasts a large and diverse customer base including some of the largest pharma and nutraceutical companies in Europe as well as small/medium-size niche leaders.

Since investing in BioDue, Riverside has focused on growing organically and through acquisition, as well as significantly investing into the organization, including adding a new CEO, CFO and wider senior management team. Earlier this year, the company completed its first add-on under Riverside ownership, a carve out of BMG Pharma, an Italian B2B company focused on the development and out-licensing of innovative patented products for the oral health, dermatology and the broader nutraceutical industry.

Davide Masini, CEO of BioDue, said: “With this investment, BioDue will not only double the size of its manufacturing capabilities but also add a large portfolio of products and technologies that will allow us to better serve our customers and be on top of the latest market trends.”

Gianluca Braguti, CEO of VLG's CDMO business unit, commented: "The management team and I are thrilled to join forces with BioDue as we embark on a new chapter in our history, continuing our journey with VLG, which will remain an important and strategic customer. We firmly believe that BioDue is the perfect partner to help us achieve our ambitious expansion goals, thanks to its unique complementarity and strong cultural alignment. I would like to extend my gratitude to all our employees, collaborators, suppliers and clients for their continued support and trust."

Working with Langer, Gaudin and Alvarez-Novoa on the transaction were Riverside Europe team members Principal Nandor Hajdu, Vice-President Mattia Gattesco and Senior Associate Jaime Garcia-Oliveros.