US-based private equity firm Texas Pacific Group (TPG) has paid US$800m (€508.8m) for a 50% shareholding in Russian pharmaceutical distribution company SIA International. The deal represents the largest private equity investment to be made in Russia. The remaining equity in the company will continue to be controlled by Igor Rudisnsky, SIA’s founder.
It is reported that TPG is not using any debt to complete the deal, reflecting the wider trend for buyout groups to pursue growth capital opportunities in less familiar markets.
TPG opened its Moscow office last year. In 2005, fellow US private equity firm Carlyle Group closed its Moscow office, which had been open for a year, and abandoned plans to raise a fund dedicated to Russia.