Warburg Pincus has acquired JHP Pharmaceuticals for $195 million. The seller is Morgan Stanley Principal Investments. JHP’s current management team will continue to hold an interest. Parsippany, N.J.-based JHP specializes in sterile injectable products. Morgan Stanley & Co. advised JHP.
JHP Pharmaceuticals, LLC (“JHP”), a specialty pharmaceutical company that acquires, develops, manufactures and sells sterile injectable products, today announced that it has been acquired by an affiliate of Warburg Pincus, a leading global private equity firm focused on growth investing, from JHP Holdings, LLC, an entity majority-owned by Morgan Stanley Principal Investments, for $195 million on a debt-free, cash-free basis. JHP’s current management team will continue to hold an interest in the company. Additional terms of the transaction were not disclosed.
Since its founding in 2007, JHP has developed into a leading specialty pharmaceutical company focused on the $30 billion U.S. sterile injectable drug market. JHP’s established market presence, high-quality sterile manufacturing facility, and experienced management team, coupled with growth capital and support from Warburg Pincus, will enable the company to pursue unique partnership and acquisition opportunities in both the branded and generic segments of the sterile injectable market.
“Over the past five years, JHP has established itself as a strong injectable pharmaceutical business manufacturing and marketing its own branded and generic products, developing a strong generic products pipeline, and supporting other pharmaceutical companies in the development and manufacturing of innovative products,” said Stuart Hinchen , co-founder and CEO of JHP. “In 2013, we will launch the first products from our strong pipeline of generic products. We believe Warburg Pincus is an ideal partner for JHP’s growth and expansion in the coming years. Warburg Pincus has deep experience in healthcare and pharmaceuticals in particular and is well known for its proven ability to strengthen the platforms of its portfolio companies.”
“With the support of Warburg Pincus, we will be able to embrace a more expansive strategy that will result in a considerably deeper and broader development pipeline for JHP,” said Peter Jenkins , co-founder of JHP.
“We have been impressed with the financial performance and quality record of JHP over the last five years, and are very pleased to contribute to the further development of the company,” said Elizabeth H. Weatherman , Managing Director and Head of the Healthcare Group, Warburg Pincus. “The management team has done an excellent job building the company and we are delighted they are remaining with the business and co-investing. JHP represents an attractive investment opportunity for us and we have reserved a sizeable amount of additional capital to fund growth opportunities that will transform the business well beyond what it is today.”
Morgan Stanley & Co. LLC acted as financial advisor to JHP Holdings, LLC, and Wachtell, Lipton, Rosen & Katz acted as legal advisor to the Special Committee of the Board of Directors of JHP Holdings, LLC. Duff & Phelps LLC provided a fairness opinion to the Special Committee of the Board of Directors of JHP Holdings, LLC. Willkie Farr & Gallagher LLP acted as legal advisor to Warburg Pincus LLC.
About JHP Pharmaceuticals, LLC
JHP, headquartered in New Jersey, is a fully integrated specialty pharmaceutical company that acquires, develops, manufactures and sells sterile injectable products. JHP’s sterile manufacturing facility, located in Rochester, Michigan, sits on over 80 acres of land and includes a 171,000 sq. ft. production building and warehouse. JHP employs more than 370 staff in the USA in its manufacturing, product development, sales & marketing and corporate areas. For more information, please visit www.jhppharma.com.
About Warburg Pincus
Warburg Pincus is a leading global private equity firm focused on growth investing. The firm has more than $30 billion in assets under management. Its active portfolio of more than 125 companies is highly diversified by stage, sector and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 13 private equity funds which have invested more than $40 billion in over 650 companies in more than 30 countries.
Since inception, the firm has invested over $8.1 billion in more than 140 healthcare companies, including investments in American Medical Systems, Bausch + Lomb, Coventry Health Care, Eurand (acquired by Axcan in 2011), Euromedic International (acquired by Merrill Lynch Global Private Equity and Ares Life Sciences in 2008), Harbin Pharmaceuticals, Lepu Medical Technology, RegionalCare Hospital Partners, ReSearch Pharmaceutical Services, Rural/Metro Corporation, Tornier and Zentiva (acquired by sanofi-aventis in 2009).
The firm is headquartered in New York with offices in Amsterdam, Beijing, Frankfurt, Hong Kong, London, Luxembourg, Mauritius, San Francisco, Sao Paulo and Shanghai. For more information, please visit www.warburgpincus.com.
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