Montagu sells Nemera to Astorg in €1bn deal

Francesca Veronesi
15 October 2018

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Montagu Private Equity has sold its stake in French drug-delivery systems manufacturer to French GP Astorg.

The sale values the target at more than €1bn, Unquote understands. The company is expected to post an EBITDA of €80m, according to French publication Capital Finance.

Astorg has offered Monatgu to remain a backer of the business, therefore the two GPs currently own a 50% stake.

Co-investments are not especially common for Astorg, though it has previously tested the arrangement with Montagu, according to a person familiar with the situation. On top of this, the fact that Montagu had successfully grown the business encouraged Astorg to propose a co-investment arrangement.

Montagu made the divestment from its €2.5bn fourth fund and will reinvest alongside Astorg from its latest fund, the €2.75bn Montagu V.

The auction process was conducted by Morgan Stanley and HSBC, and Astorg was facing Norbert Dentressangle in its final stage, according to the French publication Capital Finance.

The investment generated a 5x return for Montagu, Unquote understands. Montagu said Nemera's sales grew by 50% and its workforce increased by 25% under its ownership.

Debt
The transaction was supported by senior debt of around €450m, a source familiar to the situation told Unquote.

Natixis, Morgan Stanley, HSBC and Unicredit are leading a €455m financing, which comprises €370m first lien and €85m second lien debt, according to Unquote sister publication Debtwire.

Previous funding
Montagu bought Nemera, then known as Rexam Healthcare Devices, for $805m in 2014.

The carve-out operation saw Montagu acquire the healthcare devices and prescription retail divisions of UK consumer packaging company Rexam. The carved-out business accounted for 85% of the total EBITDA for Rexam's healthcare division, which was based in La Verpillière, in France.

At the time, according to Montagu, Rexam's healthcare devices unit generated annual sales of approximately $265m on its own and employed 1,300 staff.

Company
Nemera designs, develops and manufactures drug delivery devices for the pharmaceutical and biotechnology industries. Nemera's services and products cover five sub-sectors: ophthalmic; inhalation; nasal, buccal and auricular; dermal and transdermal; and parenteral. Based in La Verpillière, the business employs 1,600 people and sells its products in 47 countries, according to its website. Nemera generates annual revenues of €300m, according to Capital Finance.

People
Astorg – Thierry Timsit (CEO).
Montagu Private Equity – Adrien Sassi, Antoine de Peguilhan (directors).