Nordic Capital-led group sells Fougera
May 02, 2012
A consortium of private equity funds led by Nordic Capital
Funds V and VI ("Nordic Capital"), including DLJ Merchant Banking
Partners (a Credit Suisse affiliate) and Avista Capital Partners,
today announced a definitive agreement to sell Fougera
Pharmaceuticals Inc. ("Fougera" or "the Company") to Sandoz, the
generics division of Novartis, at a transaction value of USD 1,525
million on a debt and cash free basis.
Fougera, headquartered in Melville, New York, is a leading
manufacturer of topical pharmaceutical products in the United
States, with 700 employees and 2011 revenues of USD 429 million.
Previously part of Nycomed, Fougera has operated on a standalone
basis since the sale of Nycomed to Takeda Pharmaceuticals in 2011.
The shareholders have supported the Company through a number of
operational improvement initiatives since the spinoff, implemented
by the new management team led by Brian A. Markison. Other
initiatives that have contributed to the Company's strong financial
performance in 2011 and 2012 are its renewed focus on sales
growth in the generic segment, the strengthening of its production,
and the redeployment of the sales force to improve targeting of key
branded products.
"Fougera has made great progress as a standalone company
and strengthened its leadership position in the industry. By
spinning off the Company from Nycomed, Nordic Capital and our
partners were able to continue supporting its long-term growth. A
new, highly experienced management team has strengthened the
organization, and together with Nordic Capital and other key
shareholders, Fougera has proceeded to drive sales and improve
profitability. We are convinced that the Company will continue to
develop and grow under the ownership of Sandoz", said Kristoffer
Melinder, Managing Partner of NC Advisory AB, advisor to the Nordic
Capital funds.
"About this time last year, Fougera Pharmaceuticals Inc.
launched as an independent firm, committed to consistently
delivering the highest quality products and customer service. We
are pleased that the Novartis group and its generic division Sandoz
recognizes our strong leadership position in dermatology, excellent
growth prospects, competitive products and highly talented
workforce. Our businesses complement each other well and the
transaction positions the combined company for significant growth",
said Brian A. Markison, President and CEO of Fougera.
The transaction is subject to customary conditions including
competition clearance. Closing is expected in the second half of
2012.
About Fougera Pharmaceutical Inc.
Fougera Pharmaceuticals Inc., headquartered in Melville,
NY, US, is a privately-owned pharmaceutical company focused on
specialty pharmaceuticals in dermatology and is a leading
manufacturer of topical pharmaceutical products in the US. Fougera
has had more approvals in the US than any other dermatology company
over the last decade. Fougera's core divisions are: PharmaDerm - a
fully vertically-integrated specialty pharmaceutical company
dedicated to skin disease and, Fougera - a generic drug division
which primarily produces multi-source prescription and OTC
dermatologic preparations. Fougera has been serving the
pharmaceutical industry since 1849, entering the generic market in
1966. Fougera's experience and expertise, coupled with its modern
technology and innovation, will lead the way for important new
product introductions. For more information please see www.fougera.com.
About Nordic Capital
Since the start in 1989, Nordic Capital Private Equity
Funds have invested in large and medium sized companies, primarily
in the Nordic region. Nordic Capital creates value in its
investments, through committed ownership and by targeting strategic
development and operational improvements. The funds invest in
companies in Northern Europe and in selected investment
opportunities internationally. The most recent fund is Nordic
Capital Fund VII with EUR 4.3 billion in committed capital,
principally provided by international institutional investors, such
as pension funds, asset managers and insurance companies. Nordic
Capital Funds are based in Jersey, Channel Islands, and are advised
by the NC Advisory companies in Sweden, Denmark, Finland, Norway,
Germany and the UK. Additional information about Nordic Capital is
available on www.nordiccapital.com.
About DLJ Merchant Banking
Partners
DLJ Merchant Banking Partners ("DLJMB") is a private
equity investor in North America and Europe, with a 25-year history
of leading leveraged buyout and related transactions in the
middle-market. DLJMB focuses primarily on control equity
investments in middle-market companies. In addition to lead equity
investments, DLJMB selectively completes both minority equity and
structured equity investments to take advantage of unique market
opportunities. DLJMB, as an affiliate of Credit Suisse AG, operates
within Credit Suisse Asset Management. The Asset Management
business offers products across a broad spectrum of investment
classes, including hedge funds, credit, index, real estate,
commodities and private equity products, as well as multi-asset
class solutions, which include equities and fixed income products.
All businesses of Credit Suisse are subject to distinct regulatory
requirements; certain products and services may not be available in
all jurisdictions or to all client types. Further information about
Credit Suisse can be found at www.credit-suisse.com.
About Avista Capital Partners
Avista Capital Partners is a leading private equity firm
with over $4 billion under management with offices in New York,
Houston, and London. Founded in 2005, Avista's strategy is to make
controlling or influential minority investments in growth-oriented
healthcare, energy, communications & media, industrial and
consumer businesses. Through its team of seasoned investment
professionals and industry experts, Avista seeks to partner with
exceptional management teams to invest in and add value to
well-positioned businesses. For more information, please visit: www.avistacap.com.
Media contacts:
Nordic Capital
Katarina Janerud, Communications Manager,
NC Advisory AB, advisor to the Nordic Capital Funds
katarina.janerud@nordiccapital.com
Tel: +46 8 440 50 69
Credit Suisse Asset Management/DLJ Merchant Banking
Partners
Suzanne Fleming
Director, Corporate Communications
Suzanne.fleming@credit-suisse.com
Tel: +1 212-325-7396
Avista Capital Partners
Jeffrey Taufield or James David
Kekst and Company
Tel: +1 212-521-4800
About Nordic Capital Private Equity Funds
Since the start in 1989, Nordic Capital Private Equity Funds
have invested in large and medium sized companies, primarily in
Northern Europe. Through committed ownership and by targeting
strategic development and operational improvements, Nordic Capital
creates value in its investments. The funds invest in companies in
Northern Europe and in selected investment opportunities
internationally. They are based in Jersey, Channel Islands, and are
advised by the NC Advisory companies in Sweden, Denmark, Finland,
Norway, Germany and the UK. Additional information about Nordic
Capital is available through its corporate website, www.nordiccapital.com.
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