CVC, Temasek Buy Pamplona’s $2-Billion Drugmaker Alvogen

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A group including CVC Capital Partners and Singapore’s Temasek Holdings Pte bought a controlling stake in Alvogen in a deal that values the U.S. drugmaker at about $2 billion, according to people with knowledge of the matter.

The buyers bought the shares from Pamplona Capital Management, which acquired the company little more than a year ago. The valuation of $2 billion includes debt, said the people, who asked not to be identified because the financial terms weren’t disclosed.

Alvogen Chief Executive Officer Robert Wessman will keep a significant stake and continue as CEO, according to a statement from CVC, which led the group of buyers including Vatera Healthcare Partners. Pamplona will also retain a stake.

The agreement comes amid a record wave of dealmaking in the drug industry. Actavis Plc agreed to buy Allergan Inc. last November for $66 billion, while Teva Pharmaceuticals Industries Ltd. is snapping up shares in generic drugmaker Mylan NV after having a $40.1 billion takeover offer rebuffed earlier this year.

“Together with our co-investors, we are delighted to be working with Robert and his team to continue Alvogen’s extraordinary expansion,” said Tomas Ekman, partner at CVC. “We look forward to bringing our own network and operational expertise to support the team.”

Jefferies International Ltd. acted as financial adviser to the buyers and White & Case as legal adviser.

Alvogen has delivered double-digit annual revenue and profit growth since 2009, Wessman said in the statement. The company has commercial operations in 35 countries, with regional hubs in North America, Eastern Europe and Asia Pacific.

Pamplona Capital, the investment group whose backers include Russian billionaire Mikhail Fridman, bought the stake in Alvogen in April last year. It didn’t disclose terms.

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