£1.2bn acquisition of pharmaceutical group confirmed

Elmar Schnee

Pharmaceutical group Clinigen has announced the all-cash £1.2bn acquisition of the company by Bidco.

Bidco, a newly-incorporated company indirectly owned by Triton Funds, was formed for the purpose of implementing the acquisition.

Under the terms of the acquisition, Clinigen shareholders will be entitled to receive 883 pence per share.

Elmar Schnee, chairman of Clinigen said: “Since IPO, Clinigen has grown significantly to become the trusted global leader in access to medicine. Clinigen has delivered meaningful value creation to its shareholders with significant growth in revenue, earnings and cash flow since IPO.

“The Clinigen board believes this offer represents an exceptional opportunity for Clinigen shareholders to realise value for their investment in cash at a very attractive valuation. We are therefore unanimously recommending it to our shareholders.”

Triton is a private equity investment firm, specialising in healthcare, pharmaceutical and pharmaceutical services.

The company says Clinigen can better reach its full potential in a private market setting with a greater focus on long term value creation, enabled by the acceleration of investment in growth.

Triton believes that as a private company Clinigen will be able to extend its geographical reach, compete more effectively for inorganic growth opportunities, and strengthen its differentiated technology base to the benefit of the Company’s key stakeholders.

Jan Pomoell, co-head of Triton’s Healthcare sector said: “We are pleased that the board of Clinigen has unanimously agreed to recommend the acquisition of Clinigen by Bidco. Clinigen has long established itself as a leading provider of services to pharma and biotech companies, and pharmaceuticals to healthcare professionals and patients, supported by a highly-skilled workforce.

“We believe that under Triton’s ownership, Clinigen will be able to accelerate growth and better serve its clients, healthcare professionals and patients.”

In early September Sky News had reported that activist investor Elliott Management had held talks with Clinigen’s board and pushed for a break-up or sale of part of the business at the same time as its own stake in the group increased above 5%.