Procaps Group Secures $130 Million in Equity Investment and Completes Comprehensive Debt Restructuring, as New Investors Take Over Strategic Leadership
Procaps Group (PROCF) has secured a transformative $130 million equity investment and completed a comprehensive debt restructuring, marking a significant turnaround in its business strategy. The deal includes a $90 million private placement of ordinary shares and $40 million in convertible notes, with new investors now holding approximately 90% of the company.
The company has successfully restructured approximately $209 million of debt, including extended maturities and revised payment terms. As part of its transformation, Procaps has relocated its headquarters to Bogotá, Colombia, while maintaining operational presence in Barranquilla. The company is reorganizing into five regional clusters: Colombia, Brazil, United States, Andinos, and CENAM.
Under new strategic leadership, Procaps is implementing enhanced governance measures, focusing on operational efficiency, and evaluating non-core asset sales. The company aims to restore profitability through cost control and focus on high-margin segments, particularly in prescription drugs and CDMO operations.
Procaps Group (PROCF) ha ottenuto un investimento azionario trasformativo di 130 milioni di dollari e ha completato una ristrutturazione del debito, segnando un significativo cambiamento nella sua strategia aziendale. L'accordo include un collocamento privato di 90 milioni di dollari in azioni ordinarie e 40 milioni di dollari in obbligazioni convertibili, con i nuovi investitori che detengono ora circa il 90% dell'azienda.
L'azienda ha ristrutturato con successo circa 209 milioni di dollari di debito, inclusi allungamenti delle scadenze e revisione dei termini di pagamento. Nell'ambito della sua trasformazione, Procaps ha trasferito la sua sede a Bogotá, Colombia, mantenendo una presenza operativa a Barranquilla. L'azienda si sta riorganizzando in cinque cluster regionali: Colombia, Brasile, Stati Uniti, Andini e CENAM.
Sotto una nuova leadership strategica, Procaps sta implementando misure di governance migliorate, concentrandosi sull'efficienza operativa e valutando la vendita di attività non core. L'azienda mira a ripristinare la redditività attraverso il controllo dei costi e a focalizzarsi su segmenti ad alta marginalità, in particolare nei farmaci da prescrizione e nelle operazioni CDMO.
Procaps Group (PROCF) ha asegurado una inversión de capital transformadora de 130 millones de dólares y ha completado una reestructuración de deuda integral, marcando un cambio significativo en su estrategia empresarial. El acuerdo incluye una colocación privada de 90 millones de dólares en acciones ordinarias y 40 millones de dólares en notas convertibles, con nuevos inversores que ahora poseen aproximadamente el 90% de la empresa.
La empresa ha reestructurado con éxito aproximadamente 209 millones de dólares de deuda, incluyendo extensiones de vencimiento y términos de pago revisados. Como parte de su transformación, Procaps ha trasladado su sede a Bogotá, Colombia, mientras mantiene una presencia operativa en Barranquilla. La empresa se está reorganizando en cinco clústeres regionales: Colombia, Brasil, Estados Unidos, Andinos y CENAM.
Bajo un nuevo liderazgo estratégico, Procaps está implementando medidas de gobernanza mejoradas, enfocándose en la eficiencia operativa y evaluando la venta de activos no esenciales. La empresa tiene como objetivo restaurar la rentabilidad a través del control de costos y centrarse en segmentos de alto margen, particularmente en medicamentos de prescripción y operaciones de CDMO.
Procaps Group (PROCF)는 1억 3천만 달러의 혁신적인 주식 투자를 확보하고 포괄적인 부채 재구성을 완료하여 비즈니스 전략의 중대한 전환점을 맞이했습니다. 이번 거래에는 9천만 달러의 보통주 사모 배정과 4천만 달러의 전환사채가 포함되어 있으며, 새로운 투자자들이 현재 회사의 약 90%를 보유하고 있습니다.
회사는 약 2억 9천만 달러의 부채를 성공적으로 재구성했으며, 여기에는 만기 연장 및 지급 조건 수정이 포함됩니다. 변혁의 일환으로 Procaps는 본사를 콜롬비아 보고타로 이전했으며, 바랑키야에 운영 거점을 유지하고 있습니다. 회사는 콜롬비아, 브라질, 미국, 안디노스, CENAM의 다섯 개 지역 클러스터로 재편성하고 있습니다.
새로운 전략적 리더십 하에 Procaps는 개선된 거버넌스 조치를 시행하고 운영 효율성에 집중하며 비핵심 자산 매각을 평가하고 있습니다. 회사는 비용 통제를 통해 수익성을 회복하고, 특히 처방약 및 CDMO 운영과 같은 고수익 부문에 집중할 계획입니다.
Procaps Group (PROCF) a sécurisé un investissement en capital transformateur de 130 millions de dollars et a complété une restructuration de la dette, marquant un tournant significatif dans sa stratégie commerciale. L'accord comprend un placement privé de 90 millions de dollars en actions ordinaires et 40 millions de dollars en obligations convertibles, les nouveaux investisseurs détenant désormais environ 90 % de l'entreprise.
L'entreprise a réussi à restructurer environ 209 millions de dollars de dettes, y compris des prolongations d'échéance et des conditions de paiement révisées. Dans le cadre de sa transformation, Procaps a déplacé son siège à Bogotá, en Colombie, tout en maintenant une présence opérationnelle à Barranquilla. L'entreprise se réorganise en cinq clusters régionaux : Colombie, Brésil, États-Unis, Andins et CENAM.
Sous une nouvelle direction stratégique, Procaps met en œuvre des mesures de gouvernance améliorées, se concentrant sur l'efficacité opérationnelle et évaluant la vente d'actifs non essentiels. L'entreprise vise à restaurer sa rentabilité grâce à un contrôle des coûts et à se concentrer sur des segments à forte marge, en particulier dans les médicaments sur ordonnance et les opérations CDMO.
Procaps Group (PROCF) hat eine transformative Eigenkapitalinvestition in Höhe von 130 Millionen Dollar gesichert und eine umfassende Schuldenumstrukturierung abgeschlossen, was einen bedeutenden Wendepunkt in seiner Geschäftsstrategie markiert. Das Geschäft umfasst eine Privatplatzierung von 90 Millionen Dollar in Stammaktien und 40 Millionen Dollar in wandelbaren Anleihen, wobei neue Investoren nun etwa 90 % des Unternehmens halten.
Das Unternehmen hat erfolgreich etwa 209 Millionen Dollar Schulden umstrukturiert, einschließlich verlängerter Fälligkeiten und überarbeiteter Zahlungsbedingungen. Im Rahmen seiner Transformation hat Procaps seinen Hauptsitz nach Bogotá, Kolumbien, verlegt und gleichzeitig eine operative Präsenz in Barranquilla aufrechterhalten. Das Unternehmen reorganisiert sich in fünf regionale Cluster: Kolumbien, Brasilien, Vereinigte Staaten, Andinos und CENAM.
Unter neuer strategischer Führung implementiert Procaps verbesserte Governance-Maßnahmen, konzentriert sich auf operative Effizienz und bewertet den Verkauf von nicht zum Kerngeschäft gehörenden Vermögenswerten. Das Unternehmen strebt an, die Rentabilität durch Kostenkontrolle wiederherzustellen und sich auf margenstarke Segmente zu konzentrieren, insbesondere im Bereich verschreibungspflichtiger Medikamente und CDMO-Operationen.
- Secured $130 million equity investment strengthening capital structure
- Successful restructuring of $209 million debt improving cash flow flexibility
- Strategic investors with healthcare expertise now control 90% of company
- Streamlined operations into five regional clusters for better accountability
- Maintaining strong operational presence in Barranquilla for manufacturing and R&D
- Company faced challenging 2024 requiring major restructuring
- Prior period financial statements require restatement
- Delayed release of 2023 and 2024 audited financials
- Internal control and governance issues requiring remediation
- Potential asset sales may reduce company footprint
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
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
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
- Extension of maturities and revised payment terms that improve short- and mid-term cash flow;
- Reprofiling of obligations to align with the Company’s operational turnaround timeline;
- Adjustment of covenants to align with operations and strategic plan; and
- Preservation of liquidity to support day-to-day operations and strategic initiatives.
As part of the restructuring arrangement, certain lenders have agreed to convert a portion of their indebtedness into equity of the Company. This participation reinforces lender alignment with the Company’s long-term success.
This restructuring is expected to mitigate short-term financial uncertainty, aligns the Company’s capital structure with its operational goals, and will support the execution of its strategic plan. “This financial reset gives us the breathing room and flexibility to focus on what really matters: rebuilding the core of the business and creating sustainable value,” said Melissa Angelini, Interim Co-Chief Executive Officer.
A Turnaround Year in Motion
Following a challenging 2024, the Company’s focus this year has shifted to executing its turnaround strategy:
- Continued implementation of the previously announced remediation plan related to the findings of the Company’s previously-announced internal investigation, which addresses internal controls, governance, and financial reporting;
- Finalizing the restatement of the Company’s prior-period financial statements and releasing 2023 and 2024 audited financials as soon as reasonably practical;
- Continued implementation of structural cost-efficiency measures and centralized decision-making to drive operating leverage; and
- Prioritization of margin expansion through performance discipline and business simplification.
“We have entered an intense phase of execution,” said Melissa Angelini, Interim Co-Chief Executive Officer. “2025 is a year of rebuilding. We are working relentlessly to restore credibility, unlock efficiency, and create a foundation for sustainable growth. Our teams are focused on filing delayed financials, and delivering on our commitments.”
Headquarters Relocation and Organizational Transformation
As part of its transformation, Procaps has relocated its corporate headquarters to Bogotá, Colombia, placing strategic, financial, and executive decision-making closer to the Company’s core markets.
Importantly, this relocation does not impact the Company’s operational presence in Barranquilla, where manufacturing plants, product development, and other key operational teams will continue to be based. Barranquilla remains a critical hub for the Company’s innovation and production, and its role in driving the business forward remains unchanged.
The headquarter relocation is part of a broader internal reorganization that includes:
- Centralization of Finance, FP&A, Compliance, Legal, IT and key support functions;
- Leadership transitions aligned with a performance-oriented management culture and accountability;
- Governance enhancements; and
- Strengthening of internal controls, reporting, and operating discipline to support transparency and execution.
Regional Realignment and Asset Review
To increase accountability and improve commercial performance, the Company is reorganizing its operations into five regional clusters:
- Colombia
- Brazil
- United States
- Andinos (Peru, Ecuador, Bolivia)
- CENAM (Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama, and the Dominican Republic — formerly CAN and CASAND)
Additionally, the Company continues to actively evaluate strategic alternatives for non-core assets. Several discussions are in advanced stages, with potential proceeds to be used for deleveraging and reinvestment in high-margin, strategic assets and operations.
A New Chapter Begins
With a stronger capital structure, a simplified balance sheet, and renewed leadership, Procaps is now positioned to execute its transformation with discipline, clarity, and purpose.
The Company is focused on:
- Restoring profitability through operational efficiency and cost control;
- Reinforcing governance and transparency across all levels of the organization;
- Delivering on its remediation plan, and publishing financial results as soon as possible;
- Unlocking value through divestitures of non-core assets and focusing on high-margin, strategic segments; and
- Investing in innovation and commercial growth, with a focus on prescription drugs (Rx), and expanding its CDMO global footprint.
While the path forward will continue to require hard decisions and sustained execution, the foundations for a turnaround are firmly in place. With the support of a committed investor base, engaged lenders, and dedicated teams across the region, Procaps is entering a new phase of transformation—one that prioritizes stability, growth, and long-term value creation.
Advisors
Greenberg Traurig, LLP acted as lead transaction and U.S. counsel to Procaps on both the
About Procaps Group
Procaps Group, S.A. is a leading integrated international healthcare and pharmaceutical company, focused on developing, manufacturing, and commercializing pharmaceutical solutions across more than 50 markets. With a proprietary manufacturing platform, a broad portfolio of differentiated technologies, and a presence across Latin America and the U.S., Procaps is committed to improving health and well-being globally. For more information, visit investor.procapsgroup.com
Investor Contact:
ir@procapsgroup.com
investor.procapsgroup.com
Forward-Looking Statements
This press release includes “forward-looking statements.” Forward-looking statements may be identified by the use of words such as “forecast,” “intend,” “seek,” “target,” “anticipate,” “believe,” “expect,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements with respect to revenues, earnings, performance, strategies, synergies, prospects, forecasts and other aspects of the businesses of Procaps are based on current expectations that are subject to risks and uncertainties. A number of factors could cause actual results or outcomes to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, the risks and uncertainties indicated from time to time in documents filed or to be filed with the SEC by Procaps. Accordingly, forward-looking statements, including any projections or analysis, should not be viewed as factual and should not be relied upon as an accurate prediction of future results. The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on Procaps. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control), or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the risks and uncertainties, including those included under the header “Risk Factors” in Procaps’ annual report on Form 20-F filed with the SEC, as well as Procaps’ other filings with the SEC. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Accordingly, you should not put undue reliance on these statements.
FAQ
What is the size and structure of Procaps Group's (PROCF) recent equity investment?
How much debt has PROCF restructured in its 2025 financial overhaul?
What percentage of Procaps Group (PROCF) is now owned by the new investors?
What are the five regional clusters in PROCF's new organizational structure?
Where has Procaps Group (PROCF) relocated its headquarters in 2025?
