TPG and Actavis have entered in an agreement for TPG to acquire Aptalis Pharmaceutical Technologies (APT), a pharmaceutical outsourcing and R&D business. APT is currently owned by Aptalis, an operating subsidiary of Actavis. The transaction is expected to close by mid-2015.
APT is a pharmaceutical R&D and manufacturing company with specialized capabilities in taste-masking and customized drug release. The company services include project support from formulation through scale-up and commercial-scale manufacturing (www.aptalispharmaceuticaltechnologies.com).
TPG intends to use APT as a platform to enter into new partnerships and make additional acquisitions in order to grow the business. TPG’s healthcare practice has invested approximately $6 billion in equity since 2007, and the firm has executed more than 20 carve-outs from major corporations since its founding. “We see great demand in the market for APT’s drug delivery and R&D expertise, and by launching this platform, we hope to continue to support the growth and innovation of pharmaceutical companies, both through the development of de novo products, novel value-added formulations and targeted generic products,” said John Schilling of TPG.
John Fraher, current president of APT, will become CEO of the new standalone company, and will be joined by others from his management team. “We’re excited to renew our partnership with TPG, and believe the firm’s experience in the pharma industry, combined with their past successes in establishing market-leaders from carve-outs, positions us well to build a new, successful platform,” said Mr. Fraher.
TPG is a private investment firm founded in 1992 that makes investments throughout North America, Europe, Asia and Australia. Sectors of interest include industrials, retail, consumer, financial services, travel and entertainment, technology, media and communications, and healthcare. The firm has offices in San Francisco, Fort Worth, Austin, Dallas, Houston, New York, Beijing, Hong Kong, London, Luxembourg, Melbourne, Moscow, Mumbai, São Paulo, Shanghai, Singapore and Tokyo (www.tpg.com).
Actavis (NYSE: ACT) is a specialty pharmaceutical company focused on developing, manufacturing and commercializing generic and branded pharmaceutical products. The company is based in Dublin, Ireland (www.actavis.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 2-13-15
