- Atlantic Park and GIC will invest a total of €550m in CHEPLAPHARM.
- The transaction will strengthen and diversify CHEPLAPHARM’s financial base and help fuel the Company’s growth.
CHEPLAPHARM AG, a leading international platform for well-established branded medicines, today announced that it has entered into a definitive agreement on a structured investment with Atlantic Park and GIC, two global investment firms, with a total volume of €550m. The investment will strengthen and diversify CHEPLAPHARM's funding as it pursues its next phase of growth.
“We are excited to partner with two well established global players, who bring a thoughtful, strategic approach to their investments”, said CEO and founder Sebastian Braun. “Their commitment underpins the strength and resilience of our business, enabling us to seize the investment opportunities ahead of us. Together with Atlantic Park and GIC, we are in a strong position to further drive the sustainable development of CHEPLAPHARM and its diversified portfolio of proven medicines.”
Both investors have a strong track record in long-term value creation and growth investing.
“Atlantic Park is delighted to support CHEPLAPHARM’s management team as they pursue their growth ambitions,” commented Tripp Smith, founder and Managing Director at Atlantic Park. “Empowering and further strengthening market leaders like CHEPLAPHARM is a core pillar of Atlantic Park's investment philosophy, and we are excited to bring the relationships and expertise of our partners on General Atlantic's Life Sciences team to bear for the company.”
Arjun Khullar, Head of GIC’s Integrated Strategies Group, said: “GIC is looking forward to partnering with CHEPLAPHARM, a leading specialty pharma platform. We are confident in the long-term potential of CHEPLAPHARM thanks to its broad and diversified product portfolio, strong integration capabilities, as well as continued growth from acquisitions.”
CHEPLAPHARM operates a highly scalable and asset-light business model focused on investing in well-established originator brands from research-based pharmaceutical companies. The Company has grown dynamically and profitably in recent years with an average growth rate (CAGR) of 47% over the last decade. In 2021, CHEPLAPHARM continued its profitable growth trajectory and reached a revenue level above the €1bn mark for the first time in its history (+69% year-on-year growth to €1,082.0m). EBITDA increased by 86% to €624m with EBITDA and gross profit margins amounting to 58% and 75%, respectively. Even under the currently challenging macroeconomic conditions, CHEPLAPHARM has shown robust growth in the first half of 2022 with a revenue increase of 20% year-on-year.
The investment will be provided in the form of a subordinated convertible instrument and will mandatorily convert into ordinary shares of CHEPLAPHARM AG.
Credit Suisse, Deutsche Bank and J.P. Morgan acted as Joint Placement Agents to CHEPLAPHARM on this transaction. Latham & Watkins was legal advisor to CHEPLAPHARM.
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About Atlantic Park
Atlantic Park is a strategic joint venture between General Atlantic, a leading global growth equity firm established more than 40 years ago, and Iron Park Capital Partners, a deeply experienced credit-focused asset manager. Atlantic Park provides capital solutions to address financing needs for high-quality companies seeking a trusted partner. Atlantic Park takes a broad industry focus and partners with companies spanning a number of sectors, including Consumer, Financial Services, Healthcare and Technology, with a focus on companies in the United States and Europe. For more information, please visit www.atlanticpark.com
GIC is a leading global investment firm established in 1981 to secure Singapore’s financial future. As the manager of Singapore’s foreign reserves, GIC takes a long-term, disciplined approach to investing and is uniquely positioned across a wide range of asset classes and active strategies globally. These include equities, fixed income, real estate, private equity, venture capital and infrastructure. Its long-term approach, multi-asset capabilities and global connectivity enable it to be an investor of choice. GIC seeks to add meaningful value to its investments. Headquartered in Singapore, GIC has a global talent force of over 1,900 people in 11 key financial cities and has investments in over 40 countries. For more information on GIC, please visit www.gic.com.sg or LinkedIn
This announcement does not constitute an offer to sell or the solicitation of an offer to buy securities of the Company and shall not constitute an offer, solicitation or sale in the United States or in any jurisdiction in which, or to any persons to whom, such offering, solicitation or sale would be unlawful.
The distribution of this press release into certain jurisdictions may be restricted by law. Persons into whose possession this announcement comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of any such jurisdiction.
The financial data presented in this press release has been taken or derived from the audited consolidated financial statements of CHEPLAPHARM AG as of and for the year ended December 31, 2021. This release contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the management of CHEPLAPHARM Arzneimittel GmbH (the "Company"). Forward-looking statements should not be construed as a promise of future results and developments and involve known and unknown risks and uncertainties. Various factors could cause actual future results, performance or events to differ materially from those described in these statements, and neither the Company nor any other person accepts any responsibility for the accuracy of the opinions expressed in this release or the underlying assumptions. The Company does not assume any obligations to update any forward-looking statements. Moreover, it should be noted that all forward-looking statements only speak as of the date of this release and that the Company assumes no obligation, except as required by law, to update any forward-looking statement or to conform any such statement to actual events or developments.
The Company expressly disclaims any obligation or undertaking to update, review or revise any forward-looking statement contained in this release, whether as a result of new information, future developments or otherwise.
Certain financial data included in the document consists of “non-IFRS financial measures”. These non-IFRS financial measures may not be comparable to similarly titled measures presented by other companies, nor should they be construed as an alternative to other financial measures determined in accordance with IFRS. You are cautioned not to place undue reliance on any non-IFRS financial measures and ratios included herein.