PAI Partners close to acquiring SGD Pharma for around $1bn

Private equity firm PAI Partners is close to acquiring France’s SGD Pharma, a supplier of COVID-19 vaccine vials, from China Jianyin Investment (JIC), a source with direct knowledge of the transaction told Reuters.

The source said on Tuesday the deal would be submitted to antitrust authorities and employee representative bodies and require approval from China’s Finance Ministry.

The transaction, the source added, was expected to value SGD Pharma at around 10 times its core earnings, which stood at around 90 million euros ($109.15 million) last year.

SGD Pharma and Paris-based PAI Partners had no comment.

Reuters reported in March that SGD Pharma, which employs some 3,200 staff worldwide, was exploring options including a sale for more than 1 billion euros and that the business had been marketed to several buyout firms including PAI, Ardian, Eurazeo, CVC and Cinven.

The source said PAI Partners was advised by Citi and Rothschild, while JIC was advised by BofA Securities.

JIC bought SGD Pharma, whose revenue topped 347 million euros in 2020, from private equity firm Oaktree in 2016.

As part of efforts to get COVID-19 vaccination campaigns going around the world, SGD Pharma vowed last year to supply its entire daily manufacturing output of 400,000 to 500,000 moulded glass vials made at its site in Normandy, France, to vaccine makers.

Source: Reuters