Procaps Group Secures $130 Million in Equity Investment and Completes Comprehensive Debt Restructuring, as New Investors Take Over Strategic Leadership
New Investors Take Over the Strategic Leadership as Headquarters Move to Bogotá, Marking the Start of a New Chapter of Growth, Execution, and Transformation under Enhanced Governance
Company Accelerates Turnaround with Leadership Changes, Regional Realignment, Sale of Non-Core Assets and Renewed Governance
MIAMI and BOGOTA, Colombia, April 09, 2025 (GLOBE NEWSWIRE) -- Procaps Group, S.A. ("Procaps" or the "Company"), a leading Latin America integrated pharmaceutical and healthcare company, announced today a major milestone in its transformation journey with the successful completion of a $130 million equity investment (including the previously announced secured convertible notes issued to Hoche Partners Pharma Holding S.A.) and the finalization of a comprehensive debt restructuring with its key lenders, marking a turning point in the Company's multi-phase transformation strategy, centered on growth, disciplined execution, and enhanced corporate governance.
As part of this comprehensive restructuring, new strategic investors have formally taken over the leadership of the Company, bringing a renewed focus on operational excellence, financial discipline, and long-term value creation. This new leadership will be accompanied by the implementation of higher international standards in governance and compliance, including stronger internal controls and an enhanced culture of transparency and accountability.
These achievements reinforce the Company's commitment to restoring financial health, improving operational performance, and rebuilding long-term growth under the leadership of a new investor group and a redesigned organizational structure.
A Strengthened Capital Base and New Corporate Governance
The private capital raise, comprised of a $90 million private placement of ordinary shares of Procaps and the issuance of $40 million in secured convertible notes during the end of 2024 and conversion of such notes into ordinary shares of Procaps, was secured from Chemo Project S.A., Becaril S.A., Flying Fish Ventures L.P., Saint Thomas Commercial S.A., Santana S.A., Hoche Partners Pharma Holding S.A. and other investors. Together, these shareholders now hold approximately 90% of the Company.
Hoche Partners intends to play a key role in steering the Company's transformation, and continue to support Procaps' long-term strategy. The new shareholders, composed of seasoned investors with deep expertise in the healthcare and pharmaceutical sectors, will be actively engaged in guiding the Company's turnaround. Their support, leadership and long-term vision will be instrumental in positioning Procaps to successfully navigate this critical phase and build a sustainable future.
"This is a pivotal and transformational moment for Procaps," said Alejandro Weinstein, Chairman of the Board and representative of Hoche Partners. "With this strong and committed investor group that trusts the future of Procaps, the company is now in a position to stabilize, rebuild trust, and create long-term value through operational discipline and a renewed strategic focus. Our vision is to turn Procaps into one of the most admired pharmaceutical platforms in Latin America."
Comprehensive Debt Restructuring Completed
Procaps has also completed a comprehensive restructuring of its debt with key lenders, including approximately $209 million of debt previously subject to forbearance, designed to support long-term sustainability and cash flow flexibility. The arrangement with key lenders includes:
Extension of maturities and revised payment terms ...
https://www.benzinga.com/pressreleases/25/04/g44723952/procaps-group-secures-130-million-in-equity-investment-and-completes-comprehensive-debt-restructur
