Cathay Capital buys Cenexi from Chequers

Greg Gille
13 July 2015

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Sino-French GP Cathay Capital has backed the buyout of French pharmaceutical contract manufacturing business Cenexi from Chequers Capital.

Cathay is understood to have secured a majority stake in the business, with management acquiring the remainder.

The GP financed the transaction via its Midcap fund, which closed on its hard-cap of €500m at the end of last year after just six months on the road. The fund's cornerstone investors are BPI France and China Development Bank, which each committed €100m to the vehicle.

The fund invests an average of €15-50m per deal in the mid-market. It will deploy 40% of its capital in France, 40% in China and the balance in the rest of Europe.

Ardian supplied a unitranche debt facility to finance the transaction – this also includes a facility designed to finance future bolt-ons for the business.

Previous funding
Chequers acquired Cenexi from healthcare company Roche in 2008. Chequers secured a majority stake in the deal alongside management and mezzanine provider Indigo, which provided both minority equity and mezzanine debt.

Company
Founded in 2004, Cenexi focuses on pharmaceutical manufacturing, supplying products to the pharmaceutical industry. The firm produces items such as injectable ampoules, tablets and syrups, which are distributed to around 150 countries. Based in Fontenay-sous-Bois, Cenexi generated €130m in turnover last year – up from €90m at the time of the 2008 buyout.

People
Cathay president and managing partner Mingpo Cai worked on the deal, while Ardian was represented by the firm's head of private debt, Olivier Berment. Philippe Mougin is CEO of Cenexi.