Private Equity Deals & Transactions

CVC, Temasek, and Vatera buy Alvogen stake for $2 billion

CVC introduced Temasek to the deal

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A consortium of CVC Capital Partners, Singapore’s Temasek and New York-based Vatera Healthcare Partners have acquired a majority stake in pharmaceutical company Alvogen, according to a statement. The deal values the company at around $2 billion.

CVC introduced Temasek to the transaction and is leading the purchase of the stake from Pamplona Capital Management, it is understood. Pamplona will retain a small shareholding in the company, while Aztiq Pharma, the investment vehicle of Alvogen’s CEO Robert Wessman, will retain a significant holding.

CVC partner Tomas Ekman is understood to have known Wessman since 2010.

Ekman said in the statement: “Together with our co-investors, we are delighted to be working with Robert and his team to continue Alvogen’s extraordinary expansion. Robert has proven himself a visionary leader and we look forward to bringing our own network and operational expertise to support the team in creating the pharmaceutical company of tomorrow.”

Alvogen develops, manufactures and distributes generic, brand, over-the-counter and biosimilar pharmaceutical products. It markets 350 products and has 200 in development, according to the statement. The New Jersey-based company operates in 35 countries, with 2,300 employees.

CVC and Temasek have invested together previously. CVC controls German chemical maker Evonik in which Temasek has a small stake, and the Singapore sovereign wealth fund also invested in US chemicals distributor Univar, which CVC took over in 2007.

Jeffries International was financial adviser to the consortium, while White & Case provided legal advice.

This is the third co-investment CVC has announced this month. In early June the firm said it was partnering with The Carlyle Group in Neptune Oil and Gas, a $5 billion energy investment platform. This was followed by a statement that said it was partnering with New York-based firms Crestview Partners and Pine Brook to invest $650 million in insurance company Fidelis Insurance Holdings. 
CVC followed that with an announcement in mid-June that is was acquiring a majority stake in European entertainment giant Stage Entertainment for €320 million, as reported by Private Equity International.

A spokesperson for CVC declined to comment on the Alvogen transaction.