A CVC Capital Partners-led consortium is buying a controlling stake in pharmaceutical company Alvogen from private equity firm Pamplona Capital Management.
Alvogen, headquartered in Pine Brook, New Jersey, develops and manufactures generic, branded, over-the-counter and other products. The company is led by CEO Robert Wessman (pictured, left). The business operates in 35 regions, including: South Korea, West Balkan, Poland, Romania, Bulgaria, Hungary, Taiwan, Thailand, Ukraine, Russia, Japan and China. Terms of the transaction were not disclosed.
CVC, headquartered in London, has raised more than $79 billion in capital commitments since it was founded in 1981. For most businesses, CVC targets a $150 million minimum equity investment. For the firm's Asian funds, it targets a $50 million minimum equity investment. CVC is currently invested in BJ's Wholesale Club, chemical manufacturing business Univar and specialty paper brand Leslie's.
Singapore-based investment company Temasek and New York-based investment firm Vatera Healthcare Partners invested in the deal alongside CVC. Termasek has about $167 billion in assets under management and focuses on financial services, transportation, logistics, telecommunications, media, life sciences, consumer, energy and real estate. Vatera invests in biotech and pharmaceutical companies.
Pamplona, a London-based firm that invested in Alvogen in April 2014, maintains a minority stake in the business. Pamplona's other deals include the purchase of Charter Nex Films Inc., a polyethylene film business that makes packaging. Last June, the firm closed its fourth fund with $4 billion. Pamplona's other investments include Magnacare, a health care services business, Beacon Rail Leasing, a locomotive leasing group, and KCA Deutag, a drilling services business.
Jefferies International Ltd. acted as the buyer consortium's financial adviser, while White & Case provided legal advice. PWC was accountant, and InterPharmaLink was commercial adviser to the group. Simspon Thacher & Bartlett LLP was legal counsel to Alvogen and Pamplona. Lowenstein Sandler PC also provided Pamplona with legal advice.
There have been several other pharmaceutical deals recently, including Dr. Reddy's Laboratories Ltd.'s acquisition of drug brands from India's UCB, and Endo International's deal to buy Par Pharmaceutical Holdings Inc. from TPG Capital, in May.