Archer, Ironbridge exit iNova Pharmaceuticals for $690m

Archer and Ironbridge stand to make a 2.5-3x return on their investment, The Australian reported. The private equity firms bought iNova, a consumer healthcare and prescription business that operates in Australia, New Zealand, Africa and the Asia Pacific region, from 3M for A$450 million in 2006.

iNova is expected to post sales of $200 million for 2011, and John Russel, a partner at Ironbridge, said that annual earnings have risen 60% since the initial investment. The business has an operating margin of around 40%. Valeant said the acquisition would immediately add to its earnings, as well as enhancing its operations in Australia and offering a beachhead in Southeast Asia and South Africa.

Archer and Ironbridge originally put the asset up for sale in October 2009 but a combination of asset-related issues and then weak capital markets slowed progress. It was reported in September that the firms were eyeing a A$700-850 million sale before the end of the year.

Archer has already made two sizeable exits this year. In August, Archer and HarbourVest Partners sold software company MYOB to Bain Capital for A$1.3 billion, having bought the asset in January 2009 for around A$450 million (then $296 million).

The private equity firm followed up in October with the sale of Rebel Group, Australia's largest sporting goods chain, to Super Retail Group for A$610 million. It paid A$369 million for Rebel Sport in March 2007, combining the company with its existing Amart Allsports business.

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• Topics
• Exits
• Australasia
• Industrials
• healthcare
• Australia
• Exit
• Trade sale
• Archer Capital
• Ironbridge Capital