Nordic Capital offers to buy $846m Advanz Pharma

London-based Advanz Pharma on Wednesday recommended an $846 million takeover proposal from Nordic Capital, making the private equity fund a favorite to acquire the drug company.

“This offer highlights the value that our employees around the world have collectively contributed towards building Advanz Pharma into the strong and diverse company it is today,” said Advanz Pharma CEO Graeme Duncan.

“In addition, this acquisition will significantly help the business through both the capital support, and Nordic Capital’s deep sector expertise.

“I am very much looking forward to working with Nordic Capital to deliver our growth targets.”

Advanz Pharma is a specialty pharmaceutical company with a strategic focus on complex medicines in Europe.

Under the terms of the proposed acquisition, each Advanz Pharma shareholder will be entitled to receive $17.26 in cash for each Advanz Pharma share.

The acquisition values the entire issued and to-be-issued limited voting share capital of Advanz Pharma at approximately $846 million.

“As an alternative to the cash offer, eligible Advanz Pharma shareholders may elect for the alternative offer pursuant to which they would receive unlisted shares in the BidCo structure for each Advanz Pharma share, which will be issued upon, or shortly following, the agreement becoming effective,” said Advanz Pharma.

Raj Shah, Partner and Head of Healthcare, Nordic Capital Advisors, said: “As an active and supportive owner, Nordic Capital sees strong opportunities to further invest in and strengthen Advanz Pharma’s platform and to accelerate the company’s pipeline of innovative specialty pharmaceutical products.

“We believe that Nordic Capital is an ideal partner for Advanz Pharma’s management in order to realise the company’s long-term potential.

“Nordic Capital is one of the most active healthcare investors in Europe and the US, with deep experience across the pharmaceutical sector.

“An investment in Advanz Pharma is therefore at the core of Nordic Capital’s healthcare investment strategy.”