Partners Group buys BC Partners’ Pharmathen in $1.9b deal, American Securities unloads Henry Company for almost $1.6b

Partners Group snaps up Pharmathen and American Securities exits Henry Company.

Morning, everybody!

I’m heading into our Midtown office for the first time today in almost a year-and-a-half. Pretty surreal. Got any tips for me?!

Europe: In today’s news, Swiss buyout firm Partners Group is continuing to up its healthcare exposure, agreeing to buy Pharmathen, a contract development manufacturing organization (CDMO) focused on complex generic pharma products.

The European company says it is a specialist in the development of “sustained release” technologies that improve patient compliance, such as long-acting injectables, slow-releasing oral medicines and ophthalmics. The CDMO serves 215 generic pharma companies out of its two US/EU-approved manufacturing facilities in Greece, and Partners said it plans to accelerate its expansion in the US.

The deal assigns Pharmathen an enterprise value of around 1.6 billion euros, or about $1.9 billion, providing what looks to produce a strong exit for BC Partners. BC Partners first invested in the business in mid-2015 in a transaction valued at 475 million euros (~$560 million). Read PE Hub’s brief on the deal.

Partners, like other European private equity shops including EQT, Cinven and Nordic, has been an active investor on the healthcare front both in Europe, and increasingly, North America. In the US, Partners recently bought Axia Women’s Health, which valued the provider of non-clinical services in the women’s healthcare market at nearly $800 million, PE Hub wrote.

Axia followed the completion of Partners’ majority acquisition of Wedgewood Pharmacy, which valued the animal health compounding business at approximately $700 million, PE Hub sources said. The firm’s umbrella of North American healthcare businesses also encompasses EyeCare Partners, Confluent Health, and Blue River PetCare. It also owns a minority stake in PCI Pharma Services after selling a majority stake last year to Kohlberg & Co. in a $3 billion-plus deal.

Big exit: In other sizable trades, American Securities is selling Henry Company to Carlisle Companies for $1.575 billion in cash, the buyer announced this morning. That translates to 10.5x Henry’s adjusted EBITDA for the twelve months ending May 31, 2021, when including run-rate cost synergies, the announcement said.

Henry, a provider of building envelope systems, serves customers spanning both new construction and repair & restoration projects within the residential, light commercial, and commercial end-markets.

American Securities’ investment in Henry dates to October 2016.

Read PE Hub’s brief on the deal.

That’s it for me! Have a great week ahead, and as always, hit me up with feedback, tips n’ gossip, or whatever at springle@buyoutsinsider.com.