Goldman Sachs Asset Management (GSAM) is on the verge of acquiring Dutch generic drugmaker Synthon International Holding BV from BC Partners, according to sources familiar with the matter. The deal, valued at approximately €2 billion ($2.1 billion), positions GSAM as a key player in the generic pharmaceuticals market.
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Generic drugs on a shelf
GSAM emerged as the leading contender after outbidding other interested parties. While the transaction is expected to be announced soon, negotiations are still ongoing and could potentially face delays or unforeseen challenges. Notably, BC Partners is anticipated to retain a minority stake in Synthon following the acquisition.
Synthon: A Global Generics Powerhouse
Founded in 1991, Synthon International specializes in the development and production of generic pharmaceuticals across various therapeutic areas, including oncology, central nervous system disorders, and cardiovascular diseases. With a global footprint encompassing offices in Argentina, Chile, Czech Republic, South Korea, Mexico, and Spain, Synthon boasts a robust international presence.
BC Partners’ Strategic Divestment
BC Partners initially acquired a majority stake in Synthon International in 2019 for $750 million. The founder of Synthon retained a minority shareholding at that time. This impending sale marks a significant return on investment for BC Partners.
Over the past 18 months, BC Partners has successfully divested €11 billion in assets. Recent transactions include the sale of its controlling stake in Canadian security services firm GardaWorld, the initial public offering of publisher Springer Nature in Germany, the divestiture of Italian frozen food company Forno d’Asolo, and the partial sale of its stake in IMA Industria Macchine Automatiche to BDT & MSD Partners.
Financing the Acquisition
To facilitate the Synthon acquisition, a consortium of banks and direct lenders are vying to provide up to €1 billion in debt financing. This competitive lending environment underscores the strong interest in Synthon and the broader generic pharmaceutical sector.
Conclusion: A Landmark Deal in the Generics Market
The acquisition of Synthon by GSAM represents a significant development in the generic pharmaceutical industry. This transaction not only highlights the growing attractiveness of the generics market but also underscores GSAM’s commitment to expanding its healthcare portfolio. The deal is expected to further solidify Synthon’s position as a leading global provider of affordable medications.
