24 July 2009
Advent International’s portfolio company, LaborMed Pharma, today announced that it has signed an agreement to purchase the Ozone Laboratories brand and the entire portfolio of Ozone Laboratories’ products from the shareholders of Ozone Laboratories. The agreement is subject to regulatory approvals.
Bucharest-based LaborMed, which was acquired by Advent International from its founders in March 2008, is one of Romania’s leading generic pharmaceuticals companies and a major supplier of cardiovascular medicines.
Through this transaction, LaborMed will expand its portfolio to include over 400 branded Over-the-Counter (OTC) and prescription generic products sold across Romania, Poland, Hungary, Bulgaria and the Czech and Slovak Republics. These include well-known brands such as Algozone, Trachisept, Ceclozone, Extremvit and Entran.
Along with the Ozone brand, LaborMed will also acquire the associated intellectual property and distribution channels owned and managed by Ozone Laboratories. The transaction does not include any of the Ozone Laboratories companies.
Since Advent’s acquisition, LaborMed’s buy-in management team, led by Stephen Stead, former CEO of Romania’s Terapia (previously an Advent investment), has implemented a programme of new product development, increased production efficiency and commercial development.
The acquisition of the Ozone product portfolio, which produced a turnover of 44m euros in 2008, will expand LaborMed’s presence across Central & Eastern Europe, enabling the company to sell its own extensive pipeline of new products throughout the region. The transaction will also provide LaborMed with a strong OTC business, complementing the company’s branded generic products and allow it to diversify into more therapeutic areas.
Commenting on the transaction, Emma Popa-Radu Managing Director of Advent’s Bucharest office says: "Advent is delighted to be providing equity finance for LaborMed’s growth through this acquisition. The deal is an important step for the company in achieving its goal of being, not just a leading Romanian business, but also a regional player in Central and Eastern Europe."
The advisers on the transaction were Badea Clifford Chance, Baker & McKenzie and Ernst & Young for LaborMed Pharma and Advent International, and Cameron McKenna and N.M. Rothschild for Ozone Laboratories. The Advent deal team was Emma Popa-Radu and Sebastian Tcaciuc.
The LaborMed deal is the third acquisition to be completed this year by Advent International portfolio companies in C&E Europe. In March, FleetCor, a global fleet card company with a subsidiary in Prague, acquired Kansas-based Corporate Lodging Consultants, a leading provider of lodging management programmes to US businesses. In April, Ultimo, Poland’s leading debt purchase and receivables management business, successfully acquired a significant portfolio of non-performing consumer loans with a face value of just under 90m euros.