CVC buys 50% stake in DFE Pharma for NZD 633m

The sale price comprises a cash payment of NZD 537m, payable on completion of the sale, plus an interest-accruing vendor loan of NZD 96m for a term of up to 15 years. In addition, the deal includes a potential payment of up to NZD 44m based on DFE's performance over two years.

With CVC's support, DFE intends to consolidate its market position, boost its international expansion and explore potential M&A opportunities.

The GP deployed capital from its CVC Strategic Opportunities II fund, which held a final close in July 2019 on €4.6bn, surpassing its target of €4bn.

This is the second deal inked by the vehicle following its acquisition of a 30% stake in GEMS Education from a consortium led by Fajr Capital and including Tactical Opportunities funds managed by Blackstone and Bahrain Mumtalakat Holding Company.

CVC Strategic Opportunities II invests in controlling, co-controlling or minority stakes in businesses with enterprise values of €1-5bn, operating in low-volatility sectors and environments, providing goods or services to non-cyclical sectors and offering longer-term opportunities for strategic development.

Company
Established in 2006 as a 50/50 joint venture between dairy companies FrieslandCampina and Fonterra, DFE produces and supplies pharmaceutical companies with lactose excipients for oral solid dose and dry powder inhalation.

The company is headquartered in Goch with operations across Europe, India and New Zealand, and has an active presence in 100 countries.

People
CVC Capital Partners – Thierry Bogaert (partner); Jan Reinier Voûte (co-head of CVC Strategic Opportunities). 
Fonterra – Miles Hurrell (CEO).
DFE Pharma – Bas van Driel (CEO).

Advisers
Equity – Rothschild & Co (corporate finance); Freshfields Bruckhaus Deringer (legal); KPMG (financial due diligence).
Vendor – Goldman Sachs New Zealand (corporate finance); Russell McVeagh (legal); HVG Law (legal).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Buyouts
• DACH
• Healthcare
• CVC Capital Partners
• Germany
• Rothschild
• Goldman Sachs
• KPMG