Apax acquires family-run business
Article Date: Sep 18 2007Private equity giant Apax Partners has acquired Qualitest and Vintage Pharmaceuticals, a US-based distributor and manufacturer of generic drugs.
Qualitest’s founder, William Propst, exited after almost 25 years at the helm of the family business which employs 620 people in North Carolina and Alabama. He says that growing the company has been ‘one of the most rewarding experiences of my life’.
However, last year Vintage Pharmaceuticals pleaded guilty to a number of felony counts of producing a mislabeled drug between January to October 2000. The company was fined and, as part of the plea agreement, Propst gave up his position at Vintage while continuing to serve as chairman of Qualitest, which acts as a marketing and distribution arm.
The fee for the acquisition was not disclosed but Apax says it has invested over $2.8 billion (£1.4 billion) in the healthcare sector since 1989 and has a team of 13 investment professionals across its global platform. The team has spent the past two years involved in the generic pharmaceutical industry
Cathrin Petty, a partner of Apax Partners, observes that Propst’s family business has ‘significant scope for further expansion’.
Bear, Stearns & Co acted as sole financial adviser to Qualitest. Acquisition financing was provided by RBC Capital Markets as lead arranger and bookrunner.
