Sun sells Nextpharma to Capvest

Capvest's bid was backed by a €100m unitranche giving the company an enterprise value of slightly less than €200m, according to unquote" sister publication Debtwire, citing a source close to the matter.

The same source said the bid was based on a projection of €20m EBITDA, giving the deal 5x leverage. The company recorded €16.6m of EBITDA from a €146.4m turnover in 2015, according to publicly available documents.

Nextpharma's profitability has more than doubled under Sun's stewardship, according to a press release. The GP says it has strengthened senior management and optimised the manufacturing processes during its six-year tenure.

The company aims to further expand its customer offering with the support of its new owners.

Previous funding
Sun acquired Nextpharma for an undisclosed sum in February 2011 using capital from its Sun Capital Partners V vehicle. At the time, the company had an estimated turnover of €120m.

The company's debt was partially refinanced in early 2015 – terms of the deal were not disclosed.

Company
Nextpharma is a pharmaceutical contract development and manufacturing organisation headquartered in the UK and founded in 2000. It employs around 1,000 people and has operations in Germany, France, Switzerland and Austria.

Nextpharma develops and produces a range of pharmaceutical products including solids, liquids and semi-solids to seven of the 10 largest European pharmaceutical companies, according to a company statement.

People
Capvest Partners – Christopher Campbell (partner).
Sun European Partners – Lionel de Posson (principal).
Nextpharma – Peter Burema (CEO).

Advisers
Equity – Altium (corporate finance).
Vendor – William Blair (corporate finance).

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• Topics
• Buyouts
• UK / Ireland
• Healthcare
• Exits
• Secondary buyout
• CapVest Equity Partners
• Sun European Partners