Rye, N.Y. and Billerica, Mass., May 20, 2021 – SFW Capital Partners has announced a significant investment in Pion Inc., a leading company specializing in analytical instrumentation critical for formulation development and quality control within the life sciences sector. This strategic move sees SFW Capital Partners, known for its focus on high-growth technology companies, taking a majority stake in Pion Inc., signaling a strong belief in Pion’s future and potential. Mike and Sharon Kelly, who have successfully steered Pion Inc. for the past decade, will reinvest in this transaction, maintaining a vested interest in the company’s continued success.
Founded in 1996, Pion Inc. has established itself as a pivotal provider of essential tools for pharmaceutical scientists. Their offerings, encompassing instrumentation, software, reagents, and comprehensive services, are integral to the development of safe and effective medications. Pion Inc.’s proprietary fiber-optic and PhysChem analysis technologies are crucial across the biopharmaceutical drug lifecycle, from initial screening and development to production and stringent quality control. This includes a wide array of drug types, such as extended-release formulations, injectable therapeutics, generic pharmaceuticals, and vital vaccines. The reliance of numerous global pharmaceutical giants on Pion Inc.’s solutions underscores the company’s importance in the industry. Pion Inc. operates within a substantial multi-billion-dollar global market, catering to the demand for advanced tools and analytical instrumentation in pharmaceutical formulation and quality assurance processes.
Ahmad Sheikh, Partner at SFW Capital Partners, articulated the strategic rationale behind the investment, stating, “Pion Inc.’s high-value product portfolio, unique and defensible technology, strong customer engagements, and considerable opportunities for expansion align perfectly with SFW’s investment criteria.” He further added, “We are excited to collaborate with Mike, Sharon, and the experienced Pion Inc. management team and are committed to building upon the robust foundation they have diligently established.”
Sheikh highlighted Pion Inc.’s consistent profitability and impressive growth trajectory, which has outpaced the market by more than twofold over the last five years. “We believe that Pion Inc.’s growth can be further accelerated by focusing on new product innovations, expanding its international footprint, strengthening its sales and marketing strategies, reinforcing the management team, and pursuing strategic acquisitions,” Sheikh elaborated. This outlines a multi-faceted approach to amplifying Pion Inc.’s market leadership and extending its reach.
Mike Kelly reflected on the partnership, “After dedicating nearly ten years to Pion Inc., Sharon and I sought a specialized investment partner who could help us fully realize Pion’s potential while allowing us to transition from day-to-day operations.” He continued, “SFW Capital Partners distinguished themselves from other potential investors through their proven track record of success with companies like Pion Inc. and their growth-focused investment philosophy. We are confident that Pion Inc. will accelerate its growth, broaden its customer base, and introduce groundbreaking solutions to the market, propelling formulation development science forward in the years to come.”
As part of a planned leadership transition, Mike Kelly will assume the role of Chairman of the Board, and Brian Dutko will take the helm as the new CEO of Pion Inc. Dutko brings extensive experience in the life sciences tools and analytical instrumentation sector, having spent 23 years in senior leadership at Malvern Instruments, including his role as President of Malvern, Inc. His tenure at Malvern was marked by significant contributions to the company’s growth into a leading entity in materials and biophysical characterization, particularly within the life sciences, achieving consistent double-digit annual revenue growth.
Brian Dutko expressed his enthusiasm for his new role, “I am thrilled to join Pion Inc. as CEO, working alongside Mike and Sharon Kelly and SFW Capital Partners, to continue the company’s legacy of excellence and high-performance culture.” He emphasized Pion Inc.’s strong foundation, stating, “The company’s proprietary technology and unmatched expertise in formulation development provide an excellent platform for building a more substantial enterprise. Pion Inc.’s Scissor product line, for instance, marks its entry into the large molecule space, an area with significant demand for advanced analytical solutions. We anticipate launching several innovative products in the coming years to better serve our valued customers.”
SFW Capital Partners has a notable history of investing in family and founder-owned businesses within the Industrial and Healthcare Technology sectors. Their portfolio includes companies like Granite River Labs, Caron Products & Services, Essen Bioscience, Micromeritics, and Filtec. SFW’s industry expertise, investment history, growth-oriented approach, and collaborative partnership model have consistently been key factors in their selection as the preferred investment partner by founders and families.
About SFW Capital Partners, LP
SFW Capital Partners is a specialized private equity firm focused on investing in leading companies within the Information, Software, Industrial, and Healthcare Technology sectors. These companies deliver substantial return on investment to their customers and serve a diverse range of end-markets. The firm’s principals bring over 25 years of experience in investing and operating within relevant business models, technologies, competitive landscapes, and service requirements. This deep expertise enables SFW Capital Partners to effectively support management teams in driving company growth and value creation. For more information, please visit www.sfwcap.com.
About Pion Inc.
Pion Inc., established in the United States in 1996, traces its roots in life sciences research back to 1989. Based in Billerica, Mass., Pion Inc. is a science-driven company committed to providing innovative technology, solutions, support, and scientific expertise to the drug development industry. Through a range of advanced testing instruments and techniques, Pion Inc. empowers the pharmaceutical research community to leverage reliable data for the creation of novel products that positively impact lives. Pion Inc. acquired the technology underpinning its flagship Rainbow in situ fiber-optics UV measurement instrument through the acquisition of Delphian Technology in 2002 and was acquired by Mike and Sharon Kelly in 2011. For further details, please visit www.pion-inc.com.
For SFW Capital
Tom Faust
[email protected]
646-502-3513
SOURCE SFW Capital Partners
