Pronova Biocare (Norway) - Oct 2007

Ferd Private Equity (FPE I) has listed Pronova BioPharma (previously Pronova Biocare), a Norwegian manufacturer of Omega-3 pharmaceutical products, on the Oslo Stock Exchange for an offer price of NOK 23 per share.

The total offer size is NOK 2.7bn (including an over-allotment option), and based on the set offer price, the company will have a market capitalisation of NOK 6.9bn (EUR 900m). Prior to the listing, Ferd held 93% of the shares, but at the completion of the offer, the investor will hold approximately 58.3% of the shareholding. Carnegie and UBS acted as joint global coordinator and joint bookrunners for the offering.

Ferd acquired an 80.1% stake in Pronova BioPharma from its first fund, Ferd Private Equity Fund I, for an enterprise value of NOK 530m. After the completion of the deal the company worked closely with Collet Pharma, which was acquired by Ferd for NOK 200m in December 2003, and employed a buy-and-build strategy to grow the companies. In May 2005, the buyout firm increased its stake in the company when the NOK 225m loan was repaid.

Epax, Pronova’s industrial brands division was established as a separate company after a demerger in December 2005. The company was sold in January 2007 to Austevoll Seafood ASA for NOK 575m, returning a 12x money multiple and 215% IRR to Ferd Private Equity.

In May 2009 Herkules Capital reduced its holding from 58.4% to 50.01%. Approximately 25m shares were sold at NOK 18.40 per share.

Herkules announced it would sell up to 25,269,931 shares, retaining a minimum of 50.1% of its holding, on 26 May, the day before the transaction was completed. The investor intends to remain a majority shareholder in the business. The book building was done by Carnegie and SEB Enskilda.

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