London’s 3i to acquire Alpharma’s API business

06 February 2008 21:33  [Source: ICIS news]

NEW YORK (ICIS news)--London-based private equity and venture capital firm 3i has agreed to back the buyout of Alpharma’s active pharmaceutical ingredients (API) division in a deal valued at about $395m (€269m), 3i said on Tuesday.

The transaction is expected to close in the second quarter.

The API business develops, manufactures and markets a line of fermentation-based APIs and one chemically synthesised API, which are used primarily by third parties.

For the nine months ended 30 September, the division had net sales of $138.7m and operating income of $30.7m.

Headquartered in Norway, it is a major player in the fast-growing injectable generics market with a portfolio that includes both APIs and finished dosage forms of antibiotics such as vancomycin, bacitracin and polymyxin, according to 3i.

Manufacturing facilities are located in Copenhagen, Denmark; Oslo, Norway; Budapest, Hungary; and Taizhou, China. The business employs about 700 people.

“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-Ake Carlsson, CEO of the API business.

3i Industrialist-in-residence Peter Chambre will be appointed a non-executive chairman to the company.

3i concentrates on mid-market buyouts, with over €3bn invested in over 60 companies across Europe. The firm recently raised a €5bn fund. It has over 15 years’ experience in the pharma sector, past investments including Betapharma and Domantis.

The firm has also been active in the fine chemical sector, acquiring Kemira’s fine chemicals business in 2004 and renaming it KemFine. KemFine in turn acquired Avecia Fine Chemicals in Grangemouth, Scotland, in 2005.

The new acquisition, which is narrowly focused on human health, will not be combined with KemFine, which focuses on the agrochemical, specialty chemical and animal health markets.

Bridgewater, New Jersey-based Alpharma will focus on the growth of its pharmaceutical and animal health businesses.

($1.00 = €0.68)

By: Clay Boswell
+1 713 525 2653

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