CVCI invests in Bulgaria-based Huvepharma

The private equity arm of Citigroup has made an all-equity minority investment in the livestock pharmaceuticals producer.

Citi Venture Capital International (CVCI) has bought a 38 percent stake in Bulgaria-based specialty pharmaceuticals company Huvepharma in an all-equity transaction. Financial details were not disclosed.

The private equity arm of Citibank had been following Huvepharma, a manufacturer of livestock pharmeceuticals, for five years, said a company spokesperson. “We’d had talks with the founders and shareholders, but they didn’t feel that it was the right time to sell,” they said. “But we kept in contact with them throughout the years and finally in 2009 we sat down with them to discuss a minority acquisition.”

CVCI was attracted to Huvepharma’s “very high growth prospects”, with the company poised to launch new products which it will market to regulated livestock geographies worldwide. Sixty-five percent of the company’s revenues come from Europe and the USA.

CVCI has invested in pharmaceuticals a number of times before, including BaDM, a pharmaceuticals distributor in Ukraine, Egypt-based Amoun Pharmaceutical and Turkey-based Biofarma.

The Huvepharma investment was made on behalf of CVCI Growth Fund II, which closed in 2007 on $4.3 billion.