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Advent completes Central Europe's first take-private transaction by a private equity firm

Advent International has acquired almost 91 per cent of listed Romanian pharmaceuticals business Terapia. The transaction represents Central Europe's first leveraged public-to-private investment carried out by a private equity firm.

Terapia is Romania's third largest pharmaceuticals business with sales of just over $32m in 2002. The company targets high-growth therapeutic areas including chronic disease and outpatient treatments.

‘Terapia is a strong, well managed, profitable company with a sound strategy for expansion,' said Joanna James, managing director of Advent International Central and Eastern Europe. ‘We are delighted to have successfully closed this offer and we look forward to taking the company to its next stage of development.'

‘Our growth plans are ambitious, aiming to turn Terapia into the dominant local manufacturer, with a good portfolio of higher value-added products and strong sales and marketing capabilities,' James added.

The European Bank for Reconstruction and Development and the Dutch Development bank have joined Advent in this investment.

The Romanian pharmaceuticals market is currently worth in the region of $600m. Advent believes that this market offers considerable potential for development, with one of the lowest expenditures per capita in the region and widespread improvements in health education, living standards and life expectancy.

Advent has invested in over 80 healthcare and life sciences companies world wide since its inception in 1987, half of which have completed IPOs. The firm has been investing in Central Europe since 1994.

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