SteriPack: the first 100 days
The right partner for growth should see a fast-paced first 100 days together as both sides collaborate to kick off an agreed value creation plan. SteriPack CEO Andrew McLean shares the firm’s experience.
Why did you choose to Partner with Inflexion?
It is always good to work with a partner that “gets it”, and Inflexion clearly had the expertise and understanding of what we do in the healthcare market. More importantly however, we outlined our strategic vision of how we believe growth can be accelerated and more value unlocked, and the folks from Inflexion were enthusiastic supporters of that ambitious vision. For the Senior Leadership Team and myself, that was a key determining factor in choosing to partner with them.
What are your plans for growth?
SteriPack is a flexible and responsive contract manufacturer that provides integrated product life-cycle management services for medical devices, diagnostics, and pharmaceutical & combination device products. The business has won awards for its design & development services, and customers clearly rate our value proposition: our organic growth rates are far above industry average, with each of the key market segments we serve exhibiting this strong growth. This could not be achieved without delivering superior quality and reliability to our customers through our global operational footprint.
Added to this we have done several very successful acquisitions so far and intend to do more acquisitions in the life-sciences design & development domain, injection molding, and expanding the portfolio in our flourishing diagnostics business.
How have the first 100 days been?
We hit the ground not running, but sprinting! The key area where we needed help was with bolt-on acquisitions in highly targeted areas. Even before we closed the transaction the Inflexion team had a list of qualified targets to explore. We have made significant and tangible progress in record time in this regard, so I am super excited about how quickly we are making progress.
In addition, we were able to identify key areas where we needed to tidy up a few things after going through the due diligence process. We have acted on those areas very quickly, cleaned them up, and can now focus firmly on executing the key items in our value creation plan.
How did they compare to your expectations?
Well… it is always interesting to see if promises made during such a process translate into action after a transaction closes, and I have to say we are all really impressed so far. One of the most important aspects we discussed in detail was that our company is founded in solving customer problems and acting with speed, so things like to ability to get CAPEX approvals quickly and move with the pace required by our customers was critical to maintain. Inflexion understand this, and so far, they have “walked the talk”.
Where do you see the business in five years’ time?
I can’t give away all the juicy details! But we are on a good thing right now and we do have a bold and ambitious growth plan based on superior organic growth, bolstered with highly targeted acquisitions. We will continue to invest in the business, and most importantly our people.
The culture of SteriPack is key to maintain. We have a wonderful foundation that has been created and reinforced over time, and that will continue to give us a competitive advantage.
In five years’ time this business will for sure be much larger, with additional competencies and capabilities that will serve our customers even better than we do today, underpinned by people that are highly motivated by providing reliability and quality in everything we deliver to our customers.
What tip would you give a management team looking for a private equity investor?
Sharing the vision and passion for your team’s strategy and growth plan is key. No one knows the business better that the team running it on a daily basis and interacting with the customers, so having a partner that can help, challenge, debate and drive the best decisions is key, but also ultimately having trust in the management team.
Cultural fit and chemistry with the key people from the investor is also key, coupled with a shared passion, enthusiasm and excitement about the growth prospects of the business!