Media centre

All Group media enquiries should be directed to
Vanessa Maydon, Corporate Affairs Director.

Cinven Partners LLP
Warwick Court
Paternoster Square
London EC4M 7AG

Tel: +44 (0)20 7661 3325
Mob: +44 (0)7802 961 902
Email: Vanessa Maydon

Press releases

AMCo
17 August 2012

Cinven invests in Mercury Pharma

European private equity firm, Cinven, today announces that it has reached agreement to acquire Mercury Pharma ("Mercury" or the "Company"), the international specialty pharmaceutical company, as a platform for further industry consolidation. The Company has been acquired from Hg Capital for an enterprise value of £465 million.

Mercury markets niche and branded pharmaceuticals, with its customers including retail pharmacies and hospitals in the UK, as well as international markets. It has a strong focus on the UK although its products are sold globally in more than 50 countries incorporating Southeast Asia and the Middle East.  The Company has a broad portfolio of well-established products including treatments for anaesthesia, anti-psychotic, arthritis and anti-inflammatory, cardiovascular, critical and emergency care, joint and musculoskeletal, pain and pulmonary arterial hypertension.

Cinven's healthcare team identified niche pharmaceuticals as an attractive segment on the basis that:

  • it is comparatively insulated from patent expiry issues which affect the broader pharmaceutical industry;
  • it is a relatively fragmented market, providing opportunities for a 'buy-and-build' strategy, in particular, given Cinven's significant ability to identify add-on opportunities through its sector expertise; and
  • it benefits from underlying demographic trends that will result in more patients requiring treatment with the cost-effective products in Mercury's extensive portfolio.

Headquartered in Surrey, UK, Mercury has operational bases in the UK, Ireland and India. The Company has generated strong revenue growth in recent years with sales well over £100 million.  It has a highly experienced management team, led by John Beighton, Group Chief Executive, who joined Mercury in 2010. He was previously UK Managing Director of Teva and formerly at SmithKline Beecham.

Commenting on this transaction, Supraj Rajagopalan, a Partner at Cinven, said:

"We identified niche and branded pharmaceuticals as an attractive segment and, within that, Mercury as a strongly performing business. In addition to its excellent existing product portfolio and pipeline - both of which should drive strong organic growth - it is a fantastic platform for further consolidation both in the UK and internationally. Our in-depth knowledge of this sector, given our long-term focus on healthcare, has enabled us to identify a number of compelling acquisition opportunities which we hope to execute in the early stages of our investment."

"Despite the challenging macroeconomic environment, there will continue to be demand for the essential medicines provided by Mercury. In a number of areas, Mercury is actually able to work with payors to reduce costs to the healthcare system.  We are delighted to be working with John and his team to implement our shared vision for the Company."

"Our investment in Mercury demonstrates our focus on acquiring European-based companies with significant international growth prospects, as well as our ability to originate investments through our strong sector focus."

John Beighton, CEO of Mercury Pharma, added:

"In the past two years, the Mercury business has been streamlined to refocus on its core specialty pharmaceutical products. We have a well-diversified product range with high barriers to entry and are investing in creating a pipeline of similarly specialist medicines.  Our 15 new products launched in 2011/12 are already starting to show earnings momentum and we have a strong product pipeline. Despite the current economic environment, our products and company are extremely well positioned."

"We are delighted to be partnering with Cinven who, with their experience in both healthcare and 'buy and build' strategies, will provide invaluable expertise and investment as we enter this next phase of growth."

Cinven has a strong track record in the healthcare sector.  In 2011, it sold Phadia Group, the leading in-vitro allergy diagnostics business, based in Sweden, to Thermo Fisher Scientific Inc. for an enterprise value of €2.47 billion which generated a 3.4x return multiple to its fund and represented a capital gain of around €1 billion.  To date, Cinven has made 12 investments in the healthcare sector (excluding Mercury) representing €2.4 billion invested capital and generating returns of 3.1x on exited investments.

Advisors on this transaction included: Deloitte (for commercial, financial and tax) and Clifford Chance (for legal).

Portfolio company videos

 Clinical Trials

Bioclinica

Clinical Trials

 Travel services provider

Hotelbeds Group

Travel services provider

 Truck component manufacturer

Jost

Truck component manufacturer

 Footwear and accessories retailer

Kurt Geiger

Footwear and accessories retailer

 Contract research organisation

Medpace

Contract research organisation

 Electronic security and alarm systems

Pronet

Electronic security and alarm systems

 Property valuation and advisory services

Tinsa

Property valuation and advisory services

 Ufinet is a neutral telecom operator.

Ufinet

Ufinet is a neutral telecom operator.

 Business services software

Visma

Business services software

Media contacts

Cinven

Vanessa Maydon
Corporate Affairs Director
Tel : +44 (0)20 7661 3325
Mob : +44 (0)7802 961 902
Email : Vanessa Maydon

Clare Bradshaw
Communications Manager
Tel : +44 (0)20 7667 3248
Mob : +44 (0)7881 918 967
Email : Clare Bradshaw

UK - FTI Consulting

Edward Bridges
Tel : +44 (0)20 7269 7147
Mob : +44 (0)7768 216 607
Email : Edward Bridges

Stephanie Ellis
Tel : +44 (0)20 3727 1173
Mob : +44 (0)7890 543 056
Email : Stephanie Ellis

France โ€“ FTI Consulting

Guillaume Granier
Tel : +33 (0)1 47 03 68 61
Mob : +33 (0)6 32 65 79 28
Email : Guillaume Granier

Caroline Guilhaume
Tel : +33 (0)1 47 03 68 17
Mob : +33 (0)6 38 91 88 51
Email : Caroline Guilhaume

Germany - FTI Consulting

Lutz Golsch
Tel : +49 (0)69 920 37 110
Mob : +49 (0)173 651 7710
Email : Lutz Golsch

Daniel Herbert
Tel : +49 (0)69 920 37 183
Mob : +49 (0)151 122 63834
Email : Daniel Herbert

US - Joele Frank

Jonathan Keehner
Tel : +1 212.355.4449
Mob : +1 917 589 2073
Email : Jonathan Keehner

Julie Oakes
Tel : +1 212.355.4449
Mob : +1 917 574 7263
Email : Julie Oakes

Spain โ€“ Groupo Albion

Alejandra Moore Mayorga
Tel : +34 91 531 23 88
Email : Alejandra Moore Mayorga

Sofia Garcia
Tel : +34 91 531 23 88

Italy โ€“ Community Group

Roberto Patriarca
Tel : +39 02 89 40 42 31
Mob : +39 335 65 09 568
Email : Roberto Patriarca

Marco Pedrazzini
Tel : +39 02 89 83 66 21
Mob : +39 347 0369 222
Email : Marco Pedrazzini