Permira has agreed to acquire aquatic health company PHARMAQ in a transaction valued at €250 million, according to the firm. The transaction, which is subject to regulatory approval, is expected to close by the end of May.
PHARMAQ develops, produces and markets vaccines used at fish farms in Norwegian, Chilean and UK markets. The company has performed well recently, posting “double-digit” growth in each of the last three years, according to a statement from Permira. In 2012, PHARMAQ sales totaled around €65 million.
“PHARMAQ is in an ideal position to capitalise on the growth of the global aquaculture industry and the rapid increase in demand for the production of healthy and environmentally sustainable seafood,” said Mubasher Sheikh, Permira’s head of healthcare, in a statement.
Permira is backing PHARMAQ’s current management team in the deal. The firm will support the company’s international expansion and new product growth, according to statement.
The firm is acquiring PHARMAQ through Fund IV, which closed its investment period on 31 March. The firm's Stockholm-based Nordic team sourced the deal with the help of Permira's healthcare team.
In March, it was reported that Permira had cut the fundraising target for its fifth flagship vehicle by 25 percent to between €4 billion and €5 billion. The firm had been targeting €6.5 billion for Fund V.
Permira’s fundraising was slowed by London-listed investment trust SVG’s decision to diversify beyond its core relationship with the firm. Fund V is expected to hold a first close on €2 billion this month.
Permira IV, an €11.1 billion 2006 vintage, had generated a 1.1x multiple and 4 percent net internal rate of return as of 30 September, according to the California Public Employees’ Retirement System. That fund was approximately 90 percent deployed as of last month. Its investment period was scheduled to conclude at the end of March.
Permira was founded in 1985 as a series of country specific businesses under the Schroder Ventures brand. The firm maintains offices in Frankfurt, Guernsey, Hong Kong, London, Luxembourg, Madrid, Menlo Park, Milan, New York, Paris, Stockholm and Tokyo.