Advent takes Terapia majority stake

Advent International has acquired a 90 per cent stake in Romania’s third largest pharmaceuticals business in Central Europe’s first leveraged public to private buyout.

( Advent International today announced it has acquired 90.7 per cent of the shares of Terapia, Romania’s third largest pharmaceuticals business, and will take the company private from the Bucharest Stock Exchange in the next few months.


The value of the transaction was not disclosed. It is Central Europe’s first leveraged public-to-private buyout by a private equity firm, according to a press release. The European Bank for Reconstruction and Development and the Dutch development bank FMO join Advent in this investment.  Debt for this transaction is supplied by Standard Bank London Limited and Austria’s Raiffeisen Bank SA.


“Terapia is a strong, well-managed, profitable company with a sound strategy for expansion,” said Joanna James, managing director of Advent’s Central and Eastern Europe division. “[We] look forward to taking the company to its next stage of development. Our growth plans are ambitious, aiming to turn Terapia into the dominant local manufacturer…”


Terapia, listed in 1997 after having been privatized in 1996, sells branded generics products mainly in Romania and Russia. The company’s total sales for 2002 were more than $32m. The Romanian pharmaceuticals market is worth approximately $600m.


Advent’s European pharmaceuticals investments have included Germany’s Tropon and Viatris, the UK’s Trinity Pharmaceuticals and Esaote Biomedica in Italy. In June the firm sold its holding in Spanish pharmaceuticals firm Alcala Farma, which it bought for $20m in 1999, for “just under two times money invested,” according to sources close to the firm.


Advent has been investing in Central Europe since 1994.


Earlier this month Advent announced it agreed to sell money transfer portfolio company Latin America Money Services and an operating subsidiary, DolEx Dollar Express, to Global Payments for approximately $200m.