Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Altor Gets $370 Million for Swedish Pharmacies Leveraged Buyout

March 3 (Bloomberg) -- Altor Equity Partners AB raised 2.64 billion kroner ($370 million) to fund the private equity firm’s leveraged buyout of 208 pharmacies from the Swedish government.

Nordea Bank AB is the sole underwriter for 2.59 billion kroner of senior debt while Ares Management LLC, and Armada Mezzanine Capital provided 50 million kroner of so-called mezzanine debt, which ranks after senior obligations for repayment, Nordea said in a statement today.

Stockholm-based Altor said in November it will rebrand the pharmacy outlets under the Apotek Hjaertat name to create the country’s largest independent pharmacy chain. Sweden is privatizing the pharmacy market after it was nationalized in 1970.

The senior debt includes two term loans, a revolving credit and a capital expenditure facility, according to the statement.

The acquisition debt represents less than 3.5 times the outlets’ earnings before interest, tax, depreciation and amortization, Nordea said in the statement. Altor will pay about 40 percent of the acquisition price with its own funds, according to the statement.

In a leveraged buyout, a buyer funds its acquisition with money borrowed in the target company’s name. The financing is graded below Baa3 by Moody’s Investors Service and BBB- by Standard & Poor’s.

To contact the reporter on this story: Patricia Kuo in London at pkuo2@bloomberg.net.

To contact the editor responsible for this story: Paul Armstrong at Parmstrong10@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.