Private Equity Case Study: Catalent
Blackstone helped lay the foundation for Catalent to double annual revenue to $3 billion between 2007 and 2020.
Catalent, originally a part of Cardinal Health, was rapidly expanding as a leading provider of products and services for the healthcare sector. Before its acquisition, the company operated four major business segments: Pharmaceutical Distribution and Provider Services, Pharmaceutical Technologies and Services (PTS), Medical Products Manufacturing (MPM), and Clinical Technologies and Services (CTS). Despite Cardinal Health's overall revenue of $81 billion in 2006, the PTS segment lagged behind, contributing only $1.8 billion. In 2007, Blackstone acquired the PTS unit from Cardinal Health, renaming it “Catalent."
This case study examines the strong operational foundation and strategic initiatives that propelled Catalent’s growth from its inception at the time of the buyout until its IPO in 2014. Under private equity ownership, Catalent established a robust management team, invested in research and development and technology, and modified its business model, ultimately positioning itself for success.
