Magnum Capital reaps €135m in Generis sale

Amedeo Goria
09 January 2017

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Iberian private equity fund Magnum Capital Industrial Partners has sold Portuguese pharmaceutical business Generis to Indian listed corporate Aurobindo Pharma for €135m.

The transaction sees the GP fully exit the business after an eight-year holding period. According to local press reports, New York-headquartered lender Jefferies International led the GP's exit via an auction process, in which the Indian corporate gained exclusive talks after two months of negotiation. Magnum was not available to comment at the time of publication.

Aurobindo acquired the targeted business through its Dutch subsidiary Agile Pharma for €135m in cash, in a deal expected to close in February 2017 following anti-trust approvals form Portuguese authorities.

According to a statement, the company is currently the second largest generic drug producer in Portugal. The Indian corporate has a presence in the Portuguese market through its brands Aurovitas Unipessoal and Aurobindo Pharma.

Previous funding
Magnum acquired an 80% stake in the company in December 2008 for an estimated €200m equity-debt transaction, with the funding Pavia dos Santos family retaining the remaining 20% stake.

According to unquote" data, the transaction was financed with a €100m debt package provided by a banking club including Banco Espírito Santo Investment, Banif, Caixa Peral de Depósitos and Banco Santander.

In 2013, the GP fully acquired the outstanding shares in the business, providing an exit for the founders.

Company
Founded in 2001 and headquartered in Amadora, Portugal, Generis produces generic medicines, over the counter drugs, and packaging products for the pharmaceutical industry. The company has offices in Spain and the Middle East, through its sister companies Farma-APS, Mer, Biogeneris, Inventis and Clintex.

According to a statement, the company saw its turnover increase from €62.7m in 2015 to €64.8m in 2016 and expects to reach €72m in net sales in 2017. It had adjusted EBITDA of €12.7m in 2016 and is expected to increase the figure to €15.8m in 2017.

People
Magnum Capital Industrial Partners – Joao Talone (founding partner).
Generis – Paulo Lilaia (CEO).

Advisers
Vendor – Jefferies International (corporate finance); Garrigues (legal).
Buyer – CSA (corporate finance); Campos Ferreira Sá Carneiro & Associados (legal); Grant Thornton (financial due diligence).