The Iceland Enterprise Investment Fund (EIF) has signed an agreement on the acquisition of a approximate 60% share in the generic pharmaceutical company Invent Farma ehf. The company owns and operates pharmaceutical manufacturing plants in Spain. Straumur’s Corporate Finance was the EIF’s advisor in the transaction. The acquisition agreement was signed subject to a decision from the Spanish Competition Authorities, which will be available in the coming weeks. The acquisition price is confidential.
Invent Farma has shown good business results, and foreign investment funds and pharmaceutical companies have shown an interest in acquiring the company. The sellers are domestic and foreign investors, with approximately 85% of the company’s shares held by domestic investors prior to the divestment. Silfurberg, owned by Fridrik Steinn Kristjánsson, founder of Invent Farma dn Omega Farma, will continue as a shareholder in the company.
Invent Farma was established with the acquisition by Icelandic investors of pharmaceutical manufacturing plants in Spain in 2005, but in fact the company traces its roots back to 1937. The company’s operations have shown good results in recent years, with last year’s turnover at just short of EUR 84 million and EBITDA at just under EUR 21 million. The company’s production is divided into generic drugs and the manufacture of active pharmaceutical ingredients (APIs). The company markets and sells generic pharmaceuticals under its own brands in Spain and sells pharmaceuticals and APIs in wholesale in other markets. The company’s sales are well distributed, both geographically and by customer, which reduces risk in the company’s operations. Spain is the company’s largest market for generic drugs, while Japan and the US are the largest buyers of APIs. The company’s assets amount to EUR 93 million, with equity at EUR 28 million.
The company has recently focused extensive efforts on research and development, which has resulted in a rich source of generic drugs and APIs, which will be entering the company’s production line in the coming months. The company introduces an average of eight new pharmaceuticals in the market each year, and about 45 new products are anticipated from the company in the next five years. The company’s key management will remain with the company.
Ingi Guðjónsson, Invent Farma Chairman of the Board:
“The operation of Invent Farma has been extremely successful in recent years, and we believe that the company has a bright future. A number of investors have shown interest in the company since the start of the divestment process about a year ago. I am very pleased to see the process concluded with Invent Farma remaining for the most part under Icelandic ownership.”
For further information, please contact
Hafliði Helgason, Iceland Enterprise Investment Fund
Mobile: +354 8646350