(Advent International) August 19, 2011 – Advent International, the global private equity firm, announced that it has agreed to make a strategic investment in Laboratorio LKM S.A. (LKM), a leading specialty pharmaceutical manufacturer in Argentina. The equity investment will support LKM’s efforts to consolidate its position in Argentina and further expand into other Latin American markets.
Under the agreement, Advent will purchase a majority ownership interest from LKM’s founding Kampel family, and, together with the Kampel family, will make a capital injection of approximately Ar$50 million [approximately US$12M] to support the company’s expansion plans, including a project to build a plant to export products to European markets. The value of the transaction and other financial terms were not disclosed. The investment is subject to customary closing conditions.
Founded in 1984, LKM is a leading player in Argentina’s oncology, urology, HIV and other specialty markets. The company also commercializes pharmaceuticals for the dermatology, central nervous system and general medicine segments. LKM is finalizing its new oncology plant for solid orals that it expects to inaugurate within the next six months.
“LKM operates in the fast-growing specialty pharmaceutical sector, driven by strong levels of new drug launches and innovation,” said Advent Managing Director Juan Pablo Zucchini. “We are excited about the opportunity to work with the Kampel family to support the company’s continued development.”
Added Nicolás Sujoy, a Director at Advent: “We see a number of attractive growth opportunities not only in Argentina, but also in markets we know well throughout Latin America, leveraging LKM’s current presence in Chile, Uruguay, Peru, Mexico, Venezuela and Bolivia.”
LKM Chairman Eduardo Kampel, said, “This is an exciting time in LKM’s history, and we are pleased to be working with Advent. With their support, we will continue to provide cost-effective medicine to patients in our existing markets and extend our reach to other countries in the region, creating more opportunities for our dedicated and talented employees.”
Advent International has been investing in Argentina for 15 years and the pharmaceutical sector globally for nearly 20 years. In Argentina, the firm was an investor in Fada Pharma, a manufacturer of generic pharmaceuticals for the institutional market, from 2001 to 2006. Its other Argentine investments include OCA, the largest private courier and postal services company in the country; Graffigna and Sainte Sylvie, producers of premium wine and champagne; and Universal Assistance, Argentina’s leading provider of travel and road-side assistance services. Advent’s pharmaceutical investments include current portfolio companies such as Labormed (Romania) and prior portfolio companies such as Terapia (Romania), Viatris (Germany), Tropon (Germany), Alcala Farma (Spain) and Trinity Pharmaceuticals (UK).
About Advent International
Founded in 1984, Advent International is one of the world’s leading global buyout firms, with offices in 17 countries on four continents. A driving force in international private equity for 27 years, Advent has built an unparalleled global platform of over 170 investment professionals across Western and Central Europe, North America, Latin America and Asia. The firm focuses on buyouts and strategic repositioning opportunities in five core sectors, working actively with management teams to drive revenue and earnings growth in portfolio companies. Since inception, Advent has raised $26 billion in private equity capital and, through its buyout programs, has completed 270 transactions valued at over $60 billion in 35 countries. For more information, visit www.adventinternational.com.
About Laboratorio LKM
Founded in 1984, LKM is a leading player in Argentina’s oncology, urology, HIV and specialty markets. It also commercializes pharmaceuticals for the dermatology, central nervous system and general medicine segments. The company has established a strong track record of product launches and innovation and remains dedicated to continuous research and development aimed at advancing the quality and efficacy of care. In doing so, LKM has grown to be one of the leading players in the Argentine specialty treatments sector. More information is available at www.lkmsa.com.ar.