Sanitas Acquires 100% of Homeofarm with PE Financing

The largest Lithuanian drug maker, Sanitas, has acquired the full stake in Homeofarm, a Polish ointment producer. Sanita received 100 percent of the company’s shares for USD 3.3 million. A subsidiary of Sanitas, Jelfa, and Hand-Prod, advised by investment bank Vienna Capital Partners, executed the transaction.

Homeofarm (www.homeofarm.pl)
Homeofarm was founded in 1989 and began producing topical pharmaceuticals and cosmetic products the following year. Its first successes were in its two preparations: an amber ointment and a vitamin A ointment. In 1995, the company established a separate manufacturing facility, still located near its headquarters of Gdansk.

In 2007, the company’s sales totalled approximately USD 2 million with a net profit of over USD 300,000. 30 percent of the revenue came from contract manufacturing, while the remainder was in its own line of branded products. Homeofarm produces eight different brands of products and employs 16 people.

Sanitas (www.sanitas.lt)
With facilities in Lithuania, Poland and Slovakia, Sanitas manufactures, develops and sells generic pharmaceutical products. A variety of medicines such as capsules, injectables, ointments and tablets are produced by the company. Its main shareholders are the investment fund Amber Trust II S.C.A., Citigroup Venture Capital International Jersey and Invalda.

Sanitas focuses on the market in Central and Eastern Europe as well as sectors within Russia. The company’s shares are quoted on the Vilnius Stock Exchange.

AB Invalda (www.invalda.lt)
Invalda actively manages investments in Latvia, Lithuania, Slovakia and Ukraine and has become one of the largest investment firms in Europe. The firm’s focus is in construction, finances, furniture, pharmacy and real estate.

Established in 1992, Invalda has established well-known brands such as InReal, Finasta, Kauno Tiltai and Vilniaus Baldai. The company specializes in the development and growth of businesses through optimization and extensive management oversight. Invalda has reorganized and restructured significantly in recent years.

Amber Trust II SCA (www.fbird.com)
Private equity fund Amber Trust II is located in Luxembourg and is dedicated to funding investments in the Baltic and Russian regions. It was established in 2002 to capitalize on the growth of the markets as integration with Western Europe occurred.

The firm has made ten investments, returning over 40 percent of the capital invested. Amber Trust II is in the process of exiting many of its investments.

Citi Venture Capital International (www.citigroupai.com)
The business unit of Citi Alternative Investments, Citi Venture Capital International is a private equity investor and advisory firm dedicated to the developing markets sectors. The origins of the company date back to the 1960s. Citi Venture Capital International features different options including private equity, real estate, hedge funds, infrastructure and global fixed income. It currently has a proprietary capital of USD 9.9 billion, with 20 percent of that under management.

The Company invests in IT services, retailing, pharmaceuticals, telecommunications and financial services. Citi Venture Capital operates offices in New York, London, New Delhi, Mumbai, Hong Kong, Tokyo and Santiago.