KKR invests in Arbor Pharmaceuticals

KKR said late Thursday it acquired a significant minority stake in Arbor Pharmaceuticals. Financial terms weren’t announced. Atlanta-based Arbor is specialty pharmaceutical company currently focused on the cardiovascular, hospital, and pediatric markets. KKR’s investment is coming from its North America XI private equity fund. Lazard Middle Market advised Arbor.


ATLANTA & NEW YORK–(BUSINESS WIRE)–Arbor Pharmaceuticals (“Arbor”), a specialty pharmaceutical company, today announced that KKR, a leading global investment firm, is acquiring a significant minority stake in the company. Financial terms of the transaction were not disclosed.

Acquired by its current investor group in 2010, Arbor markets branded prescription products for the cardiovascular, hospital, and pediatric markets as well as generic products through its Wilshire division. The company has completed over twenty acquisition, licensing, or product development transactions over the past four years and has multiple products filed with the FDA as well as several branded and generic products in late-stage development.
“Arbor is led by an accomplished management team with a track record of building and scaling specialty pharmaceutical platforms. We believe that Arbor, with its diversified product portfolio, late-stage development pipeline, and proven business development acumen, is well positioned for continued growth,” said Ali Satvat, Director on KKR’s Health Care investing team.
“Arbor remains committed to creating value for patients by identifying, developing, and bringing to market improved medicines with a focus on quality. Arbor and our new investment partner KKR maintain a shared vision for continuing to provide quality products that offer significant clinical benefits to patients,” commented Ed Schutter, President and CEO of Arbor.
“We are pleased to be adding KKR, with its extensive industry experience, to our shareholder base. We selected KKR based on a number of factors, including compatibility with Arbor and a shared vision for achieving future growth. This is an important next step as we continue building a fully integrated pharmaceutical company focused on products that improve patients’ lives,” added Jason Wild, Chairman of the Board of Arbor and President of JW Asset Management LLC.
KKR has a long history of investing in and growing leading health care companies, including Alliance Boots, Biomet, Gland Pharma, HCA, Jazz Pharmaceuticals, and PRA Health Sciences. KKR is funding the Arbor investment primarily from its North America XI private equity fund. The transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to close early in the first quarter of 2015.
Lazard Middle Market served as financial advisor and King & Spalding LLP served as legal counsel to Arbor. Simpson Thacher & Bartlett LLP served as legal counsel to KKR.
About Arbor Pharmaceuticals
Arbor Pharmaceuticals, headquartered in Atlanta, Georgia, is a specialty pharmaceutical company currently focused on the cardiovascular, hospital, and pediatric markets as well as generics through its Wilshire division. The company has approximately 400 employees, with over 300 sales professionals that promote its products to hospitals and physicians. In addition to its extensive pipeline, the company continues to actively pursue growth through acquisition or licensing of marketed or late-stage development products. Arbor currently markets seventeen approved NDA and ANDA products, with over forty in development. For more information regarding Arbor Pharmaceuticals or any of its products, visit www.arborpharma.com or send email inquiries to info@arborpharma.com.
About KKR
KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit, and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners’ capital and brings opportunities to others through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE:KKR), please visit KKR’s website at www.kkr.com or follow KKR on Twitter @KKR_Co.
About JW Asset Management, LLC
JW Asset Management is a New York based fund manager for five investment partnerships. JW Asset Management was founded in 1997 and has a strong history of finding opportunities within the specialty pharmaceutical sector. JW Asset Management acted as the lead investor in the Series A round for Arbor in April 2010. The firm is active in both the public and private equity markets.