European PE firm acquires pharmaceutical company Amdipharm for $590 million
15 Oct 2012
Leading European private equity firm Cinven is buying family-held pharmaceutical company Amdipharm Group for £367 million ($590 million).
Amdipharm will operate initially as a standalone business but, over time, Cinven will look to merge Amdipharm with its existing portfolio company, Mercury Pharma, which it acquired in September 2012.
The founders of Amdipharm will retain a significant minority stake in the combined business going forward.
Amdipharm was founded in 2002 by Vijay and Bhikhu Patel, who have seen their business grow from a single chemist shop in Essex to an annual turnover of over £110 million.
Through strategic acquisitions, Amdipharm offers over 50 products in more than 80 countries, including drugs for nausea, skin disease, prostrate enlargement and thyroid problems.
By merging Amdipharm with Mercury, the two businesses will generate annual revenues of over £200 million. Cinven said that the combination demonstrates the execution of its consolidation strategy within the niche pharmaceuticals sector.
