3i agrees US$395m buyout of Alpharma's Active Pharmaceutical Ingredients business
3i, the global private equity and venture capital company, has agreed to back the buyout of Active Pharmaceutical Ingredients, a world-wide developer and supplier of specialist active pharmaceutical ingredients and a division of NYSE-listed Alpharma Inc. (NYSE: ALO), in a deal valued around US$395 million.
The transaction remains subject to the approval of the regulatory authorities.
The Norway-based business, under the leadership of Carl-Åke Carlsson, is a leading company in the fast-growing injectable generics market. Its comprehensive product portfolio includes active ingredients and finished dosage forms in a number of important antibiotic products such as Vancomycin, Bacitracin and Polymyxin. The Active Pharmaceutical Ingredients business has its headquarters in Oslo as well as manufacturing facilities in Oslo, Copenhagen, Budapest and Taizhou (China). Its approximately 700 employees generated approximately US$138.7 million in revenues in the first nine months of 2007.
Alpharma Inc. was formed in 1994 through the restructuring of A.L. Laboratories Inc., Dumex A/S and Apothekernes Laboratorium AS.
Bernie Schuler, Lead Partner Healthcare at 3i, commented on the deal:
"Active Pharmaceutical Ingredients, with its leading position in a global market, highly specialised production know-how and impressive management team, is an exciting business with excellent prospects for further growth. We intend to support management's plans to build on the company's position in the fast-growing injectable antibiotics market."
"We operate in a highly dynamic industry and view 3i, with its wealth of industry expertise and strong international network, as the ideal partner to help us drive the growth of the business further," said Carl-Åke Carlsson, Active Pharmaceutical Ingredients' Chief Executive Officer.
3i Industrialist in Residence Peter Chambré will be appointed a non-executive chairman to the company upon deal completion.
3i has more than 15 years' experience investing in pharmaceutical companies, including Betapharm and Domantis, and has a strong track record of supporting such businesses at all stages of funding.
Advisers to 3i in the transaction include Merrill Lynch, Linklaters, PwC, Marsh and ERM. Debt financing has been fully underwritten by GE (Global Coordinator), CALYON Crédit Agricole CIB, Danske Bank, European Capital Financial Services Limited and HSH Nordbank AG, Nordic Area.
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3i is a world leader in private equity and venture capital. We focus on buyouts, growth capital, venture capital, infrastructure and Quoted Private Equity and invest across Europe, the United States and Asia. Our competitive advantage comes from our international network and the strength and breadth of our relationships in business. These underpin the value that we deliver to our portfolio and to our shareholders.
For more information, please visit www.3i.com.
The 3i European Buyout Business is a leader in the European mid-market. We lead mid-market buyouts up to €1bn using insight from our local knowledge, international connections, and our sector teams. Managing €3bn invested in over 60 companies across Europe, the business invests in all sectors, with a particular focus on media, healthcare and business support services. 3i recently raised a €5bn fund, the largest fund in Europe dedicated to mid-market buyouts.