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US investors Cerberus and Ampersand buy Bayer's plasma products business for $590m

German-based pharmaceutical and chemical enterprise Bayer has signed an agreement to sell the assets of its worldwide plasma products business to NPS BioTherapeutics, a newly formed corporation controlled by affiliates of US investors Cerberus Capital Management and Ampersand Ventures.

The total consideration to be received by Bayer amounts to $590m. This includes cash, a ten per cent equity interest in NPS BioTherapeutics, retention of selected working capital items and contingent payments of up to $60m. The transaction, still subjects to regulatory approvals, is expected to close in the first half of 2005.

Larry Stern, a member of the Cerberus Operations Group and chairman of NPS BioTherapeutics, said, 'We are excited to invest in a company with the industry's deepest product pipeline, excellent manufacturing expertise, leadership in pathogen safety research, and an unwavering commitment to its patients.'

'As part of this strategy, NPS BioTherapeutics will also acquire Precision Pharma Services, which currently provides fractionation services to the Bayer Plasma business. New focused ownership, in partnership with existing management, will further leverage NPS BioTherapeutics' leadership position in the industry. We are committed to growing and strengthening the business while facilitating even better support of the care provider and patient community,' he added.

Cerberus manages in excess of $14bn of investment capital. Together with its affiliates, Cerberus owns a controlling interest in over 40 companies in a diverse array of businesses around the world.

Ampersand is a spin-off of PaineWebber. The firm pursues a stage-independent investment strategy across a broad range of industrial technology sectors. Ampersand is the majority owner of Precision Pharma.

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