EQT to sell Fertin Pharma to Philip Morris

EQT exits the company four years after it acquired a 70% stake in it from the founding Bagger-Sørensen family, which retained a 30% ownership. According to Mergermarket data, the GP paid around DKK 2.8bn (€376.5m), corresponding to multiples of 3.5x revenue and 16.7x EBITDA. 

Unquote sister publication Debtwire reported that Fertin Pharma was marketed based on an expected 2021 EBITDA of DKK 370m (€48.3m) and booked 2020 EBITDA of around DKK 340m. 

The GP said it helped the company to broaden its product offering, grow its customer base, double its productivity by upgrading its business-critical systems, and digitise and automate its production facilities. It also funded investments in R&D and sustainability. EQT said the company's EBITDA grew by nearly 50% during its holding period. 

The transaction is subject to regulatory approval and expected to close later in 2021.

Company
Headquartered in Vejle, Fertin Pharma was founded in 1978 and in 2001 separated from the larger group to pioneer the use of chewing gum as a medical delivery technology.

Today, the company develops and manufactures chewing gums, tablets and powders as innovative delivery systems for pharmaceutical uses, including nicotine chewing gums to help people quit smoking. The company employs 860 people across Denmark, Canada and India.

People 
EQT – Rikke Kjær Nielsen (partner).
Bagger-Sørensen & Co – Claus Bagger-Sørensen (co-owner, board member). 
Fertin Pharma – Peter Halling (CEO).
Philip Morris International – Jacek Olczak (CEO). 

Advisers
Vendor – FIH Partners (M&A); Accura (legal); PwC (financial due diligence, tax); BCG (commercial due diligence); Implement (operational due diligence); COWI (environmental due diligence).

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

• Topics
• Exits
• Nordics
• Healthcare
• EQT
• Denmark
• Trade sale