Nordic Capital buys back into Nycomed

Nordic Capital has taken a controlling interest in the Danish pharmaceutical company that it previously owned between 1999 and 2002, completing its third investment in a week.

A consortium of investors comprising DLJ Merchant Banking, The Blackstone Group and AlpInvest Partners has agreed to sell a controlling stake in Danish-headquartered pharmaceutical firm Nycomed to Nordic Capital.
 
The transaction comes less than two and a half years after Nordic Capital sold 100 percent of the shares in Nycomed to the consortium for a sum reported at the time to be in the region of €1 billion ($1.3 billion).
 
The investment, which values Nycomed at €1.8 billion, was made from 2002 vintage €1.5 billion Nordic Capital Fund V, according to a press release. Other financial details of the transaction were not disclosed.
 
Headquartered in Roskilde, Denmark, Nycomed provides hospital products throughout Europe. The company employs approximately 3,000 people and generated revenues of €645 million in 2004.
 
Under the terms of the new deal, Håkan Björklund will continue as CEO of the company. Toni Weitzberg, partner at Nordic Capital will become chairman.
 
Weitzberg said in a statement: “Nordic Capital is very familiar with the company, CEO Håkan Björklund and his management team. Nycomed has come a long way in recent years and there are excellent growth prospects.”
 
Financing of the deal will include the issuance of €400 million of PIK (payment in kind) notes. Completion of the deal is subject to regulatory and competition approvals.
 
Earlier this week, Nordic Capital announced the completion of two other acquisitions. The firm acquired Swedish medical device company Atos Medical from Fisher Scientific International for $110 million.
 
Nordic also acquired joint control of Leaf, the sugar confectionery division of international food ingredients company CSM, alongside London-headquartered CVC Capital Partners.
 
CVC originally announced that it had entered into a provisional agreement to acquire CSM for approximately €850 million in December 2004, beating off competition from a number of private equity houses, including Nordic Capital.