Ardian, a Europe-based private equity firm, has reportedly secured a USD 1.26 billion deal to acquire Italian drug maker Biofarma Group, making this the second major transaction in less than a year.
The deal will allow the private equity firm to enter into the flourishing dietary supplements space, which has been on the constant rise since the start of the COVID-19 pandemic as people have to increasingly demanding multivitamin products to enhance their immunity.
Notably, Biofarma Group is an Italian and European industry leader in manufacturing and development of medical devices, supplements, probiotic-based drugs and cosmetics for third parties. The company has four manufacturing sites in Veneto, Friuli Venezia Giulia, and Lombardy in Italy, and generated over USD 210.3 million in sales.
Companies like Biofarma are estimated to rake in tremendous profits over the next few years due to surging demand for dietary supplements, and functional foods in the post pandemic era. As per sources, the latest deal will increase Biofarma’s value by more than 20 times its core earnings of approximately USD 57 million.
For Ardian, this is its second investment in a contract development and manufacturing company (CDMO) in the past twelve months. It had previously assisted EQT in purchasing Recipharm, which one of the world’s leading CDMOs as of June.
The Paris based investment firm had worked with Japan’s Nomura Bank on the transaction while Ethica and Canson Capital Partners had advised White Bridge Investments.
If reports are to be believed, Ardian had been in talks with Biofarma owner White Bridge Investments to acquire the company since earlier this year, after beating a rival offer from another investment manager, BC Partners.
The latest transaction is the biggest exit for White Bridge since the firm’s inception in 2013, cited sources with knowledge of the matter.
Source Credit –
https://www.medicalbuyer.co.in/ardian-makes-1-2b-swoop-on-italys-biofarma-group/