Advent doubles money on Alcala Farma

The global private equity firm has completed the sale of its Spanish pharmaceutical manufacturer through two transactions with trade buyers in Croatia and Italy.

Advent International, the global private equity house, has sold its interest in Alcala Farma four years after investing in the Spanish pharmaceuticals company.

Advent, which last year set up an office in Madrid, has sold its stake in Alcala in two portions to pharmaceutical groups in Croatia and Italy. The generics division was sold to Pliva Pharma Holding, the Croatian pharmaceuticals group. The branded products division has been sold to the Spanish arm of Italy’s Chiesi Farmaceutici, which has links with Advent International, having acquired UK-based Trinity Pharmaceuticals from the firm in 1999. 

 

Financial details have not been disclosed, although Advent paid around $20m for the business in November 1999 and has made “just under two times money invested”, according to sources close to the firm.

 

According to Advent, interest in the Alcala businesses first arose in 2002. Advent received several approaches for the assets, with Pliva and Chiesi emerging as buyers attracted by perceived synergies between their own existing product lines and Alcala’s products. 

 

Luis Camilleri, a partner at Advent International’s Madrid office, said: “Alcala is a well managed, solid company that has successfully built two businesses, tapping a rapidly growing home market in generics and branded pharmaceuticals.”

 

Advent International has been investing in healthcare and life science businesses for 16 years, funding over 80 companies in the sector, half of which have completed IPOs on stock exchanges worldwide. European investments include Tropon, a pharmaceuticals buyout from Bayer in Germany, Trinity Pharmaceuticals in the UK, Viatris, a branded pharmaceuticals business bought out from Degussa, and Esaote Biomedica in Italy.