AGIC-led consortium buys US pharma player

Humanwell Healthcare, a Chinese drug maker, is one of several minority investors participating alongside AGIC in the transaction. The deal is valued at $600-800 million, according to a source familiar with the situation, and will facilitate an exit for Olympus Partners, a US mid-market GP that has owned the business since 2009.

Founded in 1995, Ritadose specializes in blow-fill seal (BFS) manufacturing, whereby plastic containers are blow-molded, filled with liquid product, and sealed in one continuous operation. It has a 120,000 square-foot manufacturing and packaging facility with annual capacity of 1.7 billion units. The company also produces its own portfolio of generic drugs used to treat respiratory problems.

AGIC is interested in the growing acceptance of BFS technology globally as a replacement for glass vial processing, and the potential for expanding Ritadose’s customer base in China and across Asia. Humanwell, which is market leader in China in anesthetics, Uygur medicines and fertility regulation medicines, would likely provide strategic support in these areas.

“With the investment and management support from AGIC’s healthcare team, Ritedose will be able to navigate through the regulatory approvals it needs to accelerate its expansion in the US and move into new markets in Europe and Asia, in particular China and Japan where demand for BFS in respiratory medicine is increasing,” said Sam Sun, managing director and head of Greater China at AGIC.

The PE firm was set up by Henry Cai, formerly executive chairman of corporate finance for Asia Pacific at Deutsche Bank. It focuses on small and mid-cap companies that specialize in intelligent manufacturing, high-end equipment, advanced materials, medical technologies, and environmental protection. The goal is to connect these businesses with partners in Asia that can use the technology to improve their operational efficiency.

AGIC closed its debut fund at $1 billion in February of this year, having received strong support from Asian groups including pension funds, insurance companies, and corporates. China Investment Corporation (CIC) is an anchor LP. Investments typically fall in the $40-200 million range, with co-investors brought in for larger transactions for which enterprise valuations can reach $600 million.

For its first investment, AGIC participated in the EUR925 million ($1 billion) takeover of German machining company KraussMaffei alongside China National Chemical Corporation (ChemChina) and Guoxin International Investment Corporation. The GP’s subsequent deals include Italian robotics specialist Gimatic and Slovenia-based medical equipment supplier Fotona.

Piper Jaffray & Co. is acting as exclusive M&A and debt financing advisor to the buyer consortium, with Gibson Dunn and Jones Day providing legal counsel. Ritedose is being represented by William Blair & Company and Baird, with legal representation from Kirkland & Ellis.

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• Topics
• Greater China
• North America
• Buyouts
• Healthcare
• China
• USA
• AGIC Capital