Montagu in €300m healthcare deal

The acquisition of Arkopharma is Montagu’s third healthcare investment this year.

UK-based Montagu Private Equity has agreed to buy Arkopharma, a pharmaceutical company based in France, from the company’s founder Max Rombi and his family, according to a statement.

Financial details of the transaction were undisclosed but it is understood the deal value was approximately €300 million. The deal is subject to consultation with the French Works Councils and clearance from the competition authorities.

Montagu declined to comment beyond the statement.

Arkopharma, established in 1980, develops, produces and distributes a portfolio of more than 40 brands to pharmacies. The company is based in near Nice in France, and generates annual sales of approximately €200 million. It has a workforce of more than 1,300.

The company “operates in markets offering both long term growth prospects and resilience”, Sylvain Berger Duquene, a director and head of Montagu’s French and German offices, said in the statement.

Montagu will support the business by investing in product innovation and production capacity.

The acquisition of Arkopharma will be Montagu’s third investment in the healthcare space this year. In February, Montagu acquired DORC Holding, a provider of instruments and equipment for ophthalmic surgery, from an investor group including Rabo Capital, Van Lanschot Participaties and Oftavinc. In the same month, Montagu agreed to buy the healthcare devices and prescription retail divisions of London-listed packaging group Rexam for $805 million.

Arkopharma will be the tenth investment from the firm’s €2.5 billion Montagu Private Equity IV fund, a 2010-vintage. Other investments in the fund include BSN Medical, which Montagu sold for €1.8 billion to EQT Partners in 2012, and ClyniSis, which it acquired from ECI Partners last July.

Montagu was advised by Lazard while Transaction R, part of the Rothschild & Cie Group, advised the Rombi family.