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CVC, Temasek team up to buy $2b generic drugs firm Alvogen
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A consortium of investors led by private equity firm CVC Capital Partners, that includes Singapore state fund Temasek, as well as Vatera Healthcare Partners have bought a controlling stake in pharmaceutical company Alvogen.

The investors bought the stake from Pamplona Capital Management.

Aztiq Pharma, the investment vehicle led by Robert Wessman, Alvogen‘s chief executive will remain with a significant stake and Pamplona will also retain a small stake following the transaction, the companies said in a statement.

Wessman will continue to serve as the company’s CEO. He had formerly been the chief executive of Actavis and had founded the New Jersey-based generic drugs firm in 2009.

While the deal size was not divulged, several media reports said that the transaction values the company around $2 billion.

The deal also highlights the close relationship between CVC and Temasek.

DEALSTREETASIA had recently reported that Temasek had invested up to $500 million in North America’s largest chemicals distributor Univar Inc, that is owned by buyout firm Clayton, Dubilier & Rice LLC (CD&R) and CVC.

Also Read: Temasek picks up over 20% stake Univar for $500m

Temasek-backed Univar conducts IPO, raises $770m

For Temasek, this also represents its second pharmaceutical deal within months. In April, the Singapore state fund had invested $300m in India’s Sun Pharmaceuticals.

Earlier this month, Temasek Holdings had also invested $40 million into healthcare startup Hello in a venture round, less than a year after the company had raised $2.4 million on Kickstarter, for their Sense sleep monitor.

Hello produces Sleep Pill, a device which clips onto a pillow to assess sleep quality through movement, sending data to a Sense bedside orb that measures bedroom conditions such as light, temperature and noise. It also doubles as an alarm clock.

Also Read: Temasek invests $40m in healthcare venture Hello

“Alvogen has delivered six consecutive years of strong revenue and profit growth, expanding from its original base in North America to commercial operations in 35 countries around the globe,” CVC Capital Partners said in a statement.

“Today the company has regional hubs in North America, Eastern Europe and Asia Pacific. North America is its largest market with over 60 pipeline ANDA filings. The Group currently has over 200 strategically selected pharmaceutical projects in development and registrations and 350 marketed products,” the private equity firm’s statement added.

Wessman said: “Alvogen has established itself as one of the fastest growing generic pharmaceutical companies in the industry, delivering double digit revenue and profit growth annually since 2009. The group has transformed from being a domestic US business to a global player.”

“I am delighted to welcome such a prestigious consortium of new investors on board. Collectively they will provide significant experience and additional resources to help accelerate our strong momentum and take Alvogen towards its ambition of being one of the leading generics players in the world today. I would also like to thank Pamplona for its partnership over the last year,” he added.

Jefferies International Limited acted as financial advisor to the investment consortium and White & Case is acting as legal advisor to the investment consortium in connection with the transaction. PWC acted as the accounting advisor and InterPharmaLink acted as commercial advisor to the investment consortium.

Simpson Thatcher & Bartlett LLP served as legal advisor to Alvogen and Pamplona. Lowenstein Sandler PC also served as legal advisors to Pamplona.

Capital Partners, that includes Singapore state fund Temasek, as well as Vatera Healthcare Partners have bought a controlling stake in pharmaceutical company Alvogen.

The investors bought the stake from Pamplona Capital Management.

Aztiq Pharma, the investment vehicle led by Robert Wessman, Alvogen‘s chief executive will remain with a significant stake and Pamplona will also retain a small stake following the transaction, the companies said in a statement.

Wessman will continue to serve as the company’s CEO.  He had formerly been the chief executive ofActavis and had founded the New Jersey-based generic drugs firm in 2009.

While the deal size was not divulged, several media reports said that the transaction values the company around $2 billion.

The deal also highlights the close relationship between CVC and Temasek.

DEALSTREETASIA had recently reported that Temasek had invested up to $500 million in North America’s largest chemicals distributor Univar Inc, that is owned by buyout firm Clayton, Dubilier & Rice LLC (CD&R) and CVC.

Also Read: Temasek picks up over 20% stake Univar for $500m

Temasek-backed Univar conducts IPO, raises $770m

For Temasek, this also represents its second pharmaceutical deal within months. In April, the Singapore state fund had invested $300m in India’s Sun Pharmaceuticals.

Earlier this month, Temasek Holdings had also invested $40 million into healthcare startup Hello in a venture round, less than a year after the company had raised $2.4 million on Kickstarter, for their Sense sleep monitor.

Hello produces Sleep Pill, a device which clips onto a pillow to assess sleep quality through movement, sending data to a Sense bedside orb that measures bedroom conditions such as light, temperature and noise. It also doubles as an alarm clock.

Also Read: Temasek invests $40m in healthcare venture Hello

“Alvogen has delivered six consecutive years of strong revenue and profit growth, expanding from its original base in North America to commercial operations in 35 countries around the globe,” CVC Capital Partners said in a statement.

“Today the company has regional hubs in North America, Eastern Europe and Asia Pacific. North America is its largest market with over 60 pipeline ANDA filings. The Group currently has over 200 strategically selected pharmaceutical projects in development and registrations and 350 marketed products,” the private equity firm’s statement added.

Wessman said: “Alvogen has established itself as one of the fastest growing generic pharmaceutical companies in the industry, delivering double digit revenue and profit growth annually since 2009. The group has transformed from being a domestic US business to a global player.”

“I am delighted to welcome such a prestigious consortium of new investors on board. Collectively they will provide significant experience and additional resources to help accelerate our strong momentum and take Alvogen towards its ambition of being one of the leading generics players in the world today. I would also like to thank Pamplona for its partnership over the last year,” he added.

Jefferies International Limited acted as financial advisor to the investment consortium and White & Case is acting as legal advisor to the investment consortium in connection with the transaction. PWC acted as the accounting advisor and InterPharmaLink acted as commercial advisor to the investment consortium.

Simpson Thatcher & Bartlett LLP served as legal advisor to Alvogen and Pamplona.  Lowenstein Sandler PC also served as legal advisors to Pamplona.



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