European private equity firm Cinven has acquired the Amdipharm Group, a family-owned international niche pharmaceuticals business, for a total consideration of 367 million pounds ($589.5 million). Amdipharm will initially operate as a standalone business but Cinven will be looking to merge Amdipharm with its existing portfolio company, Mercury Pharma, which it acquired in September 2012.
European private equity firm, Cinven, today announces the acquisition of the Amdipharm Group (“Amdipharm” or “the Group”), the family-owned international niche pharmaceuticals business, for a total consideration of £367 million.
Amdipharm will operate initially as a standalone business but, over time, Cinven will look to merge Amdipharm with its existing portfolio company, Mercury Pharma, which it acquired in September 2012. The combination demonstrates the execution of Cinven’s consolidation strategy within the niche pharmaceuticals sector.
Mercury and Amdipharm each market mature, niche pharmaceuticals, both branded and unbranded. The businesses are highly complementary as Mercury’s customer base is largely UK focused, whereas Amdipharm has a significantly greater international business, with its products sold in over 80 countries worldwide.
Amdipharm was founded by Vijay and Bhikhu Patel. The Group, which has grown strongly through acquisition, today generates revenues of over £110 million. The founders will retain a significant minority stake in the combined business going forward.
Commenting on the transaction, Supraj Rajagopalan, Partner at Cinven, said:
“Our acquisition of Amdipharm is completely transformational. It not only doubles the size of the combined group in terms of revenue and profitability but, importantly, creates a truly global business. This investment is another example of our ability to source proprietary opportunities through our dedicated sector expertise.”
“Vijay and Bhikhu Patel have grown a highly successful business and we share their vision for a global pharmaceutical company through a combination of both the Mercury and Amdipharm businesses. We look forward to working with the management and employees of both companies as we bring the businesses together.”
John Beighton, CEO of Mercury Pharma, added:
“Mercury and Amdipharm are a perfect combination. The businesses are highly complementary across core product areas and geographical markets and the combined group already has significant scale operating across global markets with further opportunities for growth.”