Pharmathen: Sold to private equity Partners Group

BC Partners announced the sale of the majority stake in Pharmathen to the international private equity firm Partners Group. The transaction values ​​the company at 1.6 billion euros.

Pharmathen was founded in 1969 and was acquired by BC Partners in 2015 for 475 million euros and is now the leading European company in the field of drug administration technology, the announcement said.

With a highly diversified business model and strong management team, the company specializes in the development of “extended release” technologies, with top R&D capabilities, serving a blue-chip customer portfolio in nearly 100 countries worldwide.

“Owned by BC Partners, Pharmathen has grown into a technology-driven company leading a highly attractive industry, with strong and sustainable organic EBITDA growth of 16% on a weighted annual average over the last 5 years. The company is a world leader in the field of extended release compound injection products (“LAI”), while at the same time it has created a technology platform for prolonged release treatments (“LATT”) that will fuel its growth for many years. “With a highly diversified product, customer and geographic base, Pharmathen is in a strong position to grow further, particularly in the US market, under the guidance of the Partners Group.”

Mr. Nikos Stathopoulos, Partner and Head of BC Partners said: “At Pharmathen, we saw an opportunity to make a significant investment in a high quality business to accelerate its organic growth and develop the company into a global leader. During the period of our ownership, we invested more than € 250 million in Research and Development and in new FDA approved production facilities, we almost doubled the number of employees and implemented projects that really transformed the company. This has allowed us to reposition Pharmathen as a technology-driven company in a very attractive industry with high barriers to entry, with a diversified business model, significant R&D projects in progress and top productive capabilities that give it strong prospects for greater growth. In collaboration with Management, we have built a truly admirable company, which I am convinced will continue to stand out under the management of Partners Group “.

Mr. Dimitris Kadis, CEO of Pharmathen, added: “I want to thank the BC team for their cooperation over the last six years. Their investment, support, and guidance have enabled them to be a key player in taking the company to the next level as a global leader in drug development and delivery. We are excited to partner with Partners Group in this new development chapter in our history, to build a strong drug development pillar that is a trusted partner of blue-chip customers around the world and has a positive impact on people’s lives ensuring that they can enjoy better health. ”

Consultants for BC Partners were Jefferies and Kirkland & Ellis.

The transaction is subject to obtaining the necessary regulatory approvals and is expected to be completed within 2021.