CVC Capital Partners leads investment consortium to acquire controlling stake in Alvogen
A consortium of investors led by CVC Capital Partners (“CVC”) and including Singapore-based investment company Temasek (“Temasek”) and Vatera Healthcare Partners (“Vatera”) have acquired a controlling stake in Alvogen, the high growth pharmaceutical company. The stake has been acquired from Pamplona Capital Management (“Pamplona”). 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. Robert Wessman will continue to serve as the company’s CEO.
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. 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.
Robert Wessman, CEO of Alvogen, commented: “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. “
Tomas Ekman, Partner, CVC, said: “Together with our co-investors, we are delighted to be working with Robert and his team to continue Alvogen’s extraordinary expansion. Robert has proven himself a visionary leader and we look forward to bringing our own network and operational expertise to support the team in creating the pharmaceutical company of tomorrow.”
Jeremy Gelber, Partner, Pamplona said: “We are very pleased with the progress that Alvogen has made and believe the business, under Robert’s leadership, is well poised for future growth. CVC, Temasek and Vatera bring strong global resources and deep knowledge of the pharmaceutical space which will help continue Alvogen’s development as a leader in the global generics industry.”
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 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.
Alvogen is an international, privately owned pharmaceuticals company focused on developing, manufacturing and distributing generic, brand, over-the-counter brands (OTC) and biosimilar products. The company has commercial operations in 35 countries with 2,300 employees and operates five manufacturing and development hubs. North America is Alvogen’s single largest market and other key markets include: South Korea, Romania, Bulgaria, Hungary, Taiwan, Russia and China.
About CVC Capital Partners
CVC Capital Partners is one of the world’s leading private equity and investment advisory firms. Founded in 1981, CVC today has a network of 22 offices and over 300 employees throughout Europe, Asia and the US. To date, CVC has secured commitments of over US$79 billion in funds from a diverse and loyal investor base, completing over 300 investments in a wide range of industries and countries across the globe, with an aggregate transaction value of over US$120 billion. www.cvc.com
Incorporated in 1974, Temasek is an investment company based in Singapore, with a S$223 billion portfolio as at 31 March 2014. Temasek’s portfolio covers a broad spectrum of sectors: financial services; transportation, logistics and industrials; telecommunications, media & technology; life sciences, consumer & real estate; energy & resources. Temasek has offices in 11 cities around the world, including São Paulo and Mexico City in Latin America; and London and New York, which both opened in 2014. The remaining offices are all in Asia, including China and India.
About Vatera Healthcare Partners
Vatera Healthcare Partners is a New York City-based investment group focused on taking active positions in biotech/pharmaceutical firms and products. Vatera’s objective is to identify and develop best-in-class therapies to treat unmet or underserved medical needs and improve patients‘ lives. Vatera aims to deploy patient capital and targeted expertise to build great companies, using its team’s significant experience and expertise in the biotech/pharmaceutical industry and its strong network of relationships within industry and academia. For more information, visit www.vaterahealthcare.com.
About Pamplona Capital Management
Pamplona Capital Management is a London and New York based specialist investment manager established in 2005 that provides an alternative investment platform across private equity, fund of hedge funds and single manager hedge fund investments. Pamplona Capital Management, LLP manages over USD 10 billion in assets across a number of funds for a variety of clients including public pension funds, international wealth managers, multinational corporations, family offices and funds of hedge funds. Pamplona is currently managing its fourth private equity fund, Pamplona Capital Partners IV LP, which was raised in 2014. Pamplona invests long-term capital across the capital structure of its portfolio companies in both public and private market situations. Please see Pamplonafunds.com for further information.