Pamplona Capital Management, an investment manager with offices in London, New York City, and on the island of Malta, has acquired a majority stake in pharmaceutical company Alvogen, who themselves are headquartered in Luxembourg.
The news has been announced on the Alvogen website as well as by various news sources, including Businessweek and Digital Journal, while a Press Release related to the matter has also been distributed.
While the terms and value of the deal are undisclosed, Private Equity News has reported the deal is worth close to $700million, while Pamplona has stated that the current Chief Executive of Alvogen, Robert Wessman, will continue to manage the business operations.
In a statement, Jeremy Gelber of Pamplona said, “Robert is one of the leading figures in the global generics industry and he and his team have built a first class business with excellent prospects for future growth.”
Wessman himself added, “Pamplona‘s investment is a very positive development for our business. Alvogen is making good headway in its ambitious growth strategy, delivering double-digit revenue and profit growth for each of the past five years, and we now have the ideal partner to support us as we look to further develop our business.
In particular, we are focused on strengthening our global presence through strategic transactions, and Pamplona provides us with further firepower to work towards our stated ambition of becoming a top ten global generics player.” In addition to their Luxembourg office, Alvogen operates in a further 33 countries, with a particularly strong presence in Eastern Europe.
The business does not currently have a presence in Africa and Latin America, and it is likely the further development Wessman speaks of will see Alvogen move into these markets in future years. Pamplona’s most recent fundraiser, in 2011, saw them raise $2.7billion, while they manage assets and investments totalling $6billion in total.