HIG Capital has completed its acquisition of ITH Group Limited, a specialized UK pharmaceutical services provider that operates in one of healthcare’s most critical yet understated sectors. The deal represents the $70 billion investment firm’s continued push into essential healthcare services that serve both public and private markets.
What ITH Group Does
ITH Group isn’t your typical pharmaceutical company. Founded in 2008, the firm specializes in aseptic pharmaceutical compounding – essentially creating custom injectable medications for patients whose medical needs can’t be met by standard treatments available on pharmacy shelves.
The company operates facilities in London and has built market-leading positions in three key areas: chemotherapy treatments, total parenteral nutrition (specialized feeding solutions), and central intravenous additive services. These services are particularly crucial for both adult patients and neonates who require precisely tailored medication dosages and formulations.
What makes ITH particularly valuable is its dual-market approach. The company serves both NHS patients and private healthcare customers, giving it exposure to the stability of the UK’s public healthcare system while also benefiting from private market growth.
Why This Deal Makes Sense for HIG Capital
ITH Group fits perfectly into HIG Capital’s healthcare investment thesis. The company operates in what industry insiders call an “inherently undersupplied market” – there simply aren’t enough providers offering these specialized compounding services relative to demand.
“The Company’s track record of reliably providing compounded pharmaceuticals to NHS and private customers in an inherently undersupplied market, combined with H.I.G.’s history of supporting capacity expansion in its portfolio companies, underpins an exciting next chapter for ITH,” said John Harper, managing director and head of H.I.G.’s Europe Lower Middle Market LBO team.
The acquisition also demonstrates HIG Capital’s ability to identify businesses that provide essential services with high barriers to entry. Aseptic pharmaceutical compounding requires specialized facilities, regulatory compliance, and technical expertise – factors that limit competition while ensuring steady demand.
Management Continuity and Growth Plans
One telling sign of confidence in the deal? ITH’s founding team is staying put. Adam Bloom and Karen Hamling, who built the company from the ground up, will continue as CEO and COO respectively. This management continuity typically signals that the acquisition is about growth acceleration rather than operational overhaul.
“Since our founding in 2008, ITH has consistently grown by investing in our people and enhancing the services we provide to patients,” Bloom explained. “Today, we are proud to be a leading provider of compounding services in the UK, supporting both the NHS and private healthcare sectors.”
HIG Capital plans to support ITH’s organic growth trajectory while exploring new initiatives, particularly around increasing production capacity. Given the undersupplied nature of the market, capacity expansion could unlock substantial value.
Part of a Broader June Strategy
The ITH acquisition wasn’t HIG Capital’s only move in June. The firm also brought back veteran private equity professional Antonin Marcus as a managing director in its Paris office, following his eight-year stint at Eurazeo. Marcus previously worked at HIG Capital earlier in his career and will lead middle market LBO activities in France.
“Antonin is a highly regarded private equity investor,” said Olivier Boyadjian, managing director and head of HIG Capital’s Paris office.
Meanwhile, the firm’s portfolio company Highridge Medical completed the divestiture of its EBI Bone Healing Division to Avista Healthcare Partners. HIG Capital had acquired EBI as part of Highridge’s take-private transaction in April 2024, but decided to sell the Parsippany, New Jersey-based division to allow Highridge to focus on its core spine business.
“This transaction allows us to make significant investments in Highridge’s core spine business, where we see tremendous opportunities to lead the next generation of spine care,” said Mike Gallagher, managing director at HIG Capital.
The Healthcare Play
These moves collectively illustrate HIG Capital’s healthcare investment approach: acquire specialized service providers in undersupplied markets, back experienced management teams, and provide capital for capacity expansion. ITH Group checks all these boxes while operating in a sector with predictable demand and limited competition.
With 19 offices globally and a track record spanning more than 400 companies since 1993, HIG Capital continues to demonstrate its ability to identify and scale businesses that provide essential services across multiple markets. The ITH acquisition suggests the firm sees significant opportunities in the intersection of public and private healthcare delivery – a trend likely to accelerate as healthcare systems worldwide face capacity constraints.
