Nordic Capital exits Nycomed

Nordic Capital has exited its investment in pharmaceutical company Nycomed through a secondary buyout of the company by CSFB Private Equity, Blackstone Capital Partners and NIB Capital Partners. Although the deal size was not disclosed it is thought to be over €1 billion.

Nordic Capital first invested in the company in 1999, when the investor acquired a majority stake in Nycomed Amersham’s pharmaceutical subsidiary for £340 million. Last year Nordic Capital bought Amersham’s remaining 29 per cent stake in the company and increased its majority stake to 98 per cent. The injection of capital will enable the company to expand, strengthen its sales and marketing position and in-license additional products for its markets.

Nycomed sources, develops, manufactures and markets specialist and prescription pharmaceuticals and consumer health products. The company’s 36 sales offices, based in 15 European markets, target general practitioners, hospital specialists and pharmacies. The company is headquartered in Denmark and employs a total of 2,600 employees. Håkan Björklund will continue as CEO of Nycomed Holding.

Under Nordic Capital’s ownership, Nycomed restructured its manufacturing operations to increase efficiency and capacity. The company has established a presence in new markets such as France and improved its standing in the Nordic and Russian markets. Nycomed has shown revenue growth in excess of 15 per cent annually between 1999 and 2001 and EBITDA has grown over 25 per cent per year. Last year’s revenues amounted to €508.3 million, with EBITDA of €105.4 million.

The transaction is subject to the approval of competition authorities. Goldman Sachs International acted as financial advisor to Nordic Capital and the other sellers in this transaction. Credit Suisse First Boston acted as financial advisor to CSFB Private Equity.