UPDATE 1-Nordic Capital offers to buy Advanz Pharma in $846 million deal

(Adds chairman comment, deal details, background)


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Jan 27 (Reuters) – Nordic Capital on Wednesday offered to buy Advanz Pharma, valuing it at $846 million and taking a lead among private equity firms to acquire the specialty drugmaker that had restructured its debt last year.

London-based Advanz had drawn interest from private equity funds including Carlyle and TDR as its creditors scrambled to find a new owner, sources familiar with the matter told Reuters last year.

The company, which was formed from the 2015 merger of Concordia Healthcare and AMCO, makes drugs used in endocrinology, urology, pain management and cardiology among other therapeutic areas.

Nordic Capital said this expertise, along with its direct sales access in Europe, made it an attractive partner when commercializing complex medicines.

Under the offer, shareholders would receive a price of $17.26 per Advanz share. They can also opt for a non-cash offer to receive unlisted shares in Cidron Aida, the parent of the bidding company, for each Advanz share up to a maximum of 20% of Cidron’s share capital.

“The proposal from Nordic Capital is considered by the ADVANZ PHARMA Independent Directors as the best outcome for all shareholders, having had discussions with, and approaches from, a variety of potential acquirors,” Advanz Chairman Elmar Schnee said.

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In the past, the company’s sale process was challenged by diverging views on valuation as Advanz’s creditors were aiming for a price tag of about $2 billion, while private equity bidders were wary of paying up after previous attempts to sell the business fell through, sources had said.

Reporting by Tanishaa Nadkar in Bengaluru; Editing by Arun Koyyur

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