CINVEN private equity group announced it will sell British-based drug maker AMCo to Canadian pharma group Concordia.
The deal, which is expected to close by the end of this year, values AMCo at £2.3bn, including debt.
The sale will be made with a combination of around £780m in cash, £455m in shares and a performance-based earn-out of around £145m over the next 12 months.
Cinven created AMCo in 2012 by merging Mercury Pharma and Amdipharm.
The company, which makes generic prescription drugs once a patent has expired, is expecting revenue of between £345m and £365m this year.
Concordia’s chairman and chief executive Mark Thompson said: “This acquisition is a key milestone and pivotal turning point in Concordia's strategy.
“The combination of our highly complementary yet geographically diverse businesses is truly transformational. It will position the combined company as a leading, international pharmaceutical company with extensive geographic reach, a diversified product portfolio, and an asset-light business model that we expect will allow us to further grow our business.”
BEHIND THE DEAL
CLIFFORD CHANCE’S GLOBAL PRIVATE EQUITY PARTNER advised Cinven when they created AMCo in 2012. His team continued to act for both companies in a number of buy and build acquisitions.
HE STUDIED at Magdalen College, Cambridge, where he got an MA in engineering and law, before training and starting at with Lovells. He joined Clifford Chance in 2001.
When NOT in the office he enjoys waterskiing and trekking in remote places, far from his Blackberry.
Senior associates Christopher Sullivan and Toby Parkinson have advised AMCo since the beginning. Joined by Oliver Marcuse, Alastair Mordaunt, Petra Carey, Rod McGillivray, Gaye Duren, Michael Dakin and Claudia Kim in a cross-practise team.